Madras High Court
State Of Tamil Nadu vs P.M. Abdul Muthaliff & Bros. on 18 September, 1989
Author: S. Mohan
Bench: S. Mohan
JUDGMENT
S. Mohan, Offg. C.J.
1. Inasmuch as there were two sales in this case, one by the Panchayat Union in favour of a third party which third party sold them in turn in favour of the assessee, the second sales of karuvai trees is undoubtedly exempt. No doubt, it may be "timber" as the Tribunal points out under entry 84. But in view of the fact that the sale in favour of the assessee is second sale it is exempt. However, what is argued is that the Panchayat Union which is the first seller is not a dealer. But that is not the correct approach. Where periodically sales of trees are effected, it undoubtedly would be a dealer. The tax case is, therefore, dismissed. No costs.
2. Petition dismissed.