DY. COMMISSIONER OF AGRICULTURAL INCOME TAX,AND SALES TAX vs M/S. PALAMPADAM PLANTATIONS LTD., KOTTAYAM

The Supreme Court held that under Section 2(viii) of the Kerala General Sales Tax Act, 1963, a person who owns a private forest and sells trees of spontaneous growth is not considered a 'dealer' if no effort is made towards the production or uprooting of those trees. The Court clarified that the term 'produced' implies an element of volition and effort, which is absent in the case of spontaneously grown trees. Consequently, the appeal against the Kerala High Court's dismissal of the revision petition was upheld, confirming that the respondent was not liable for sales tax on the timber sold.