TaxTMI 
TaxTMI 
1996 (6) TMI 321
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.... the order dated December 13, 1993 (annexure J) passed by the respondent-Deputy Conservator of Forests, whereunder he has rejected the application filed by the petitioner for refund of the amounts collected as sales tax by the Forest Department. 2.. Now, some of the admitted facts. The Forest Department, on regular basis sells right to collect tamarind in specified forest areas through public auction as per the provisions of the Karnataka Forest Act, 1964 (for short "the Forest Act") and the Rules framed thereunder. Mr. R.I. D' Sa, learned Additional Government Advocate, has placed on record the specimen of one of such agreements, which according to him is the standard form which is adopted by the department in case of all such auction s....
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....ondition 10(a) the contractor is stopped from interfering with any villager or villagers who may be permitted by a forest officer to collect and remove any produce which he is entitled to remove by virtue of any right or privilege under the provisions of the Forest Act, etc. Condition No. 11 provides that in the collection of produce, no damage shall be done to the trees by the lopping or breaking of branches or otherwise except in so far as it is necessitated by the nature of the produce collected; and no immature produce shall be collected. 5.. Condition No. 12(b) which has a material bearing on the issue involved reads thus: "12(b) The contractor shall remove the produce from the leased area before the expiry of the lease period. I....
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....e or regulating the storing or removal thereof and, on the service of any such notice, the orders and directions contained therein shall, until the same or varied by the Deputy Conservator of Forests, be taken as part of the conditions of the contract, notwithstanding anything contrary that may be contained, and shall be observed and performed by the contractor. (b) In the event of any forest area included in the lease area is not cleared due to any public cause during the lease period no compensation whatsoever will be paid to the lessees nor any representation thereof will be entertained by them to remove the available quantity of tamarind use fruits crops. (c) The contractor shall have no claim for compensation for any loss ....
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.... so payable was not made dependent on the quantity of tamarind which the contractor like the petitioner could have collected under the said agreement. Rather, it was to be paid irrespective of the fact whether for one reason or other he was unable to collect the produce. It has also been specifically provided that even if the contractor was unable to collect the tamarind from the assigned area or part thereof, even for no fault of his, he was refrained from claiming any remission or compensation. Therefore, the consideration for which the agreement was entered into with the contractor had no nexus or relationship with any goods either in existence or future. The agreement was pure and simple of conferment of a right to be exercised in the f....
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....adesh v. Orient Paper Mills Ltd. [1977] 40 STC 603 (SC); [1977] 2 SCR 149 is also not good law as that decision was given per incuriam and laid down principles of interpretation which are wrong in law. (19) The real nature of a document and the transaction thereunder have to be determined with reference to all the terms and clauses of that document and all the rights and results flowing therefrom." 9.. In the said view of the matter it is held that the respondent-officers of the Forest Department had no authority in law to collect any amount in the guise of sales tax from the grantees of the right "to collect, remove and carry away" the tamarind fruits from the assigned forest areas under the agreement like the one referred to above. ....