TaxTMI 
TaxTMI 
2000 (4) TMI 815
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....eep, etc., at its various factories situate in different parts of the country including the State of Bihar. The activities of the Company consist of manufacturing of trucks of various descriptions and size, as also their components. The Company, in the course of its manufacturing activities, requires articles and components made of wood for being used as battery base for chassis, gaggers for production of tool box, pallet platform, staging platform, staging for CED/MC wheel carrier, etc. To meet such requirements, the Company claims to purchase substantial and huge quantity of wood/timber from registered dealers having valid licences and the same is used in their own sawmills located inside their factory premises for manufacturing the various wooden components required for their main business. On an inspection made, the Company was found to have been running about 5 to 8 sawmills inside their premises and indisputably they have not obtained any licence either under the Act in question or the Forest Act for transport of the timber purchased by them, their claim throughout being that they are not carrying on any trade in timber as such, by selling the wood to any outsider nor are the....
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.... 317) besides inviting our attention at great length to the various provisions of the Act and the Rules to demonstrate as to how, in his view, the provisions are inappropriate and inapplicable to the case of the appellants. Per contra, Shri Rakesh Dwivedi, learned Senior Counsel appearing for the respondent State with equal force and vehemence contended that a careful analysis and consideration of the provisions of the Act, even in the light of the principles of construction suggested for the appellants would make them applicable to the case of the appellants - the object and reason as well as the reach of the provisions being not only to regulate "the trade of sawing" but also the establishment and operation of sawmills and saw-pits as defined in the Act and further for the protection and conservation of forests and the environment in the State, in public interest. The fact that one or the other of the Rules or Forms prescribed and some or the other particulars specified therein may not apply to the appellants is no test, according to the respondents, to exclude its application to the appellants. While inviting our attention extensively to the provisions in the Act and ....
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.... appointed day, - (a) no person shall establish a sawmill or a saw-pit except under the authority and subject to the conditions of a licence granted in that behalf under this Act; (b) no person shall operate a sawmill or a saw-pit in existence on the said date, unless he is granted a licence in that behalf under this Act on an application made by such person within a period of thirty days from such date Provided that for the period of thirty days and thereafter the period during which the application is pending for consideration, it shall be deemed as if such person was granted a licence under this Act and he was operating the sawmill or saw-pit accordingly." Section 9, which provides for submission of returns by a licensee, and Section 10, which obligates the keeping of account of the stock of wood in the sawmill and saw-pit, read as follows "9. Submission of returns. - Every licensee shall submit such returns relating to the business of the sawmill or saw-pit, as the case may be, and in such forms and to such officers and on such dates as may be prescribed. 10. Keeping of account of stock of wood in sawmill and saw-pit. - All wood whether sawn or not, found in o....
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.... permission of the licensing officer. (3) The licence shall be valid for a calendar year for which it was issued. (4) The copies of conditions (under whom the licence is being granted) and the copies of forms of accounts (in which receipt of wood, sawing and disposal) shall be showing to the applicant by the licensing officer before grant of the licence. The licensing officer shall explain the conditions and the subject-matter of draft to the applicant, if he is unable to read. The licensing officers shall obtain the signature or thumb impression of the applicant, as the case may be, on the application in token of the acceptance of the conditions. The applicant shall be applied with one copy each of conditions and terms, in which account shall be maintained. (5) In case the licence is lost and smuttered the licensee may obtain a certified copy of the licence on payment of rupees one hundred for each sawmill and rupees ten for each saw-pit, from the licensing officer." Rule 7 of the Rules mandates the maintenance of a register in Form D and a monthly account in Form E and enjoins upon a licensee to submit a return of those accounts to the Divisional Forest Officer concer....
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.... the main cause of degradation of forests, resulting in a serious threat to ecology and environment protection. Apparently conscious of the nature of the evil to be curbed and the laudable object to be achieved a most liberal and wide definition of "sawing" of an all-comprehensive nature has been enacted to rope in all kinds of activities connected with the use and consumption of wood and ultimately classify the users under two different categories depending upon the nature of operation viz., manual operation or operation with the aid of electrical or mechanical power. Section 5 of the Act not only prohibits the establishment of a sawmill/saw-pit except under the authority and subject to the conditions of a licence granted but also further interdicts the operation of such mill or pit even in existence on the appointed date, with grant of a leeway period to enable the existing mills/pits to apply and obtain the required licence. Keeping in view all these and the provisions contained in Section 10 of the Act, the words "business of the sawmill or saw-pit" used in relation to submission of returns have to be construed in their generic sense of calling, occupation ....