2007 (1) TMI 530

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....t. The assessing authority taxed the turnover of wood-wool at eight per cent treating it as unclassified item. Order of the assessing authority has been confirmed in appeal. The Tribunal, however, has accepted the plea of the dealer/opposite party (hereinafter referred to as "the dealer") and held wood-wool liable to tax at six per cent as product of timber. Heard learned counsel for the parties. Relevant Notification No. ST-2-5785/X-10(1)-80-U.P. Act XV/48Order-81, dated September 7, 1981 relating to the product of timber or wood-wool is reproduced herein below: Notification No. ST-2-5785/X-10(1)-80-U.P. Act XV/48-Order-81, dated September 7, 1981. Sl.No Description of goods Point of tax Rate of tax 39 Products o....

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....irect connection between the things and its product. The thing must be productive before it can have a product. In other words, something which naturally and directly grows out of another thing can alone be called a product of that other thing. Therefore, a product of timber must relate to the productivity from timber, i.e., something produced out of timber. The cut sizes of wooden batton in question are, therefore, according to the said dictionary meaning products of timber. There is yet another reason to come to the same conclusion and it is this that the wooden batton in question is a thing which is produced by an action, operation or work by cutting the timber into certain specified sizes. Therefore, when wooden batton is produced ou....