JUDGMENT

JUDGMENT :— The question involved in these two matters is the same. So we grant leave in SLP 2440 of 1979 and proceed to dispose of both the appeals together.

2. The respondent assessee in each of these cases acquired a reserve forest. It is common ground that the acquisition was effected with a view to raise a coffee and cardamom plantation thereon For doing this, the assessee had to clear a portion of the forest and in the process fell the unwanted trees standing thereon as natural growth. The cut trees were sold by the assessee in the form of firewood as well as in the form of cut sizes of timber as well as sleepers. Some of the growth was also converted into charcoal and the resultant charcoal sold. On these facts, the question arose in each of these cases whether the price realised by the assessee on the sale of firewood, timber, sleepers and charcoal was assessable to sales tax.

3. We are concerned with the assessment year 1969-70. The assessees turnover, in respect of these items in the case of Shanmugha Estate was Rs. 3,00,396.16 which included a turnover in charcoal of Rs. 86,829.24. In the case of Shakti Estate, the disclosed turnover was as follows :

Firewood 1,98