LexCOMMISSIONER OF SALES TAX, U.P. versus MACNEILL AND BARRY LTD., KANPUR
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739 COMMISSIONER OF SALES TAX, U.P. Vo NOVEMBER 19, 1985 [V,D. TULZAPUKKAR. AND R.S. 'PATHAK, JJ.] U,P, Sales Tax Act, 1948 & Notification No. ST - 3124/X-1012 (4) - 1964, dated July l, 1966 - Sales Tax - Levy of - 'Ammonia Paper' and' ferro paper ' - Whether "paper other than hand made paper." The respondent-assessee, a dealer in stationery and drawing material, sells ammonia paper and ferro paper• In assess..,nt proceedings under the U.P. Sales Tax Act, 1948 for the assess...nt year 1966-67 the assessee clai..,d that &lllllOnia paper and ferro paper were liable to tax as unclassified goods at the rate of two per cent prescribed by s.3 of the Act. The Sales Tax Officer rejected the claim holding that ammonia paper and ferro paper fell under the entry "paper other than hand made paper" included in notification no.ST-3124/X-1012(4) - 1965 dated July l, 1966 and its turnover was, therefore, liable to tax at six per cent. The appeal as well as the revision petition of the assessee were dismissed. At the instance of the assessee a reference was made to the High Court, which.held that "ammonia paper and ferro paper do not fall within the category of paper". Dismissing the Appeal of the Comnissiooer of Sales Tax, llKW: 1. Amnonia paper and ferro paper do not fall within the entry "paper other than hand made paper" in the notification dated July 1, 1966 issued under the U.P. Sales Tax Act, 1948. [743 D] 2. Amnonia paper and ferro paper are used for preparing prints and sketches of site plans. An impression of the print or sketch is made on the paper, and it is then exposed to light for a period of ti.., during which the chemical evaporates resulting in the emergence of the print or sketch of the site plan. Therefore, ammonia paper and ferro paper cannot be regarded as paper in the popular sense of that term. Paper is used for A B c D E F G H 740 SUPRE.ME. COURT REHJRTS [1965] SU~f. 3 s.c.R. A printing or writing or for packing. Amnonia paper and ferro paper are not employed for any of the purposes and subjected to any of the processes for which paper, as commonly understood, is generally used. [742 C-E] State of Uttar Pradesh 8Dd Anr. v. Kores (India) Ltd., B (1977) s.r.c. 8 and State of Orissa v. Gestetuer Duplicators (P) Ltd., (1974) 33 s.r.c. 333, relied upon. llahsrajs !look Depot V• State of Gujarat, (1979] 2 S.C.R. 138, distinguished • . CIVIL Af PI:.LLATE. JURISDIC1101< Civil Appeal l\o. 1338 of c 1973. D From the Judgment and Order dated 19.2.1973 of the Allahabad High Court in Sales Tax Reference No. 357 of 1971. S.C. Nanchanda, R.A. Gupta and Ljjal Singh for the Appel- S.T. Desai, R.K, Puri, N.N. 1andon and Randhir Chawla for the Respondent. The Judgment of the Court was delivered by E PAlllAK, J. The short question in this appeal by special leave is whether ammonia paper and ferro paper can ·be described as ''paper other than hand made paper" for the purposes of the notification No. ST-3124/X-1012(4) - 1965 dated July 1, 1966 issued under the U.P. Sales Tax Act, 194&. F The respondent asses see is a dealer in stationery and drawing material, and sells ammonia paper and ferro paper. In assessment proceedings under the U.P. Sales Tax Act, 1948 for the assessment year 1966-67 the assessee claimed that affilLOnia paper and ferro paper were liable to tax as unclassified goods at the rate of two per cent prescribed by s.3 of the.Act. The claim was G not accepted by the Sales Tax Officer who hold that anmonia paper and ferro paper fell under the entry "paper other than had made paper' included in notification No. ST-3124/X-1012(4) - 1965 dated July 1, 1966 and its turnover was, therefore, liable to tax at six per cent. Against the assessment so made the assessee appealed, but his appeal was dismissed by the Assistant R Commissioner (Judicial), Sales Tax. A revision petition by the WMMNR. OF SALES TAX v. MACNEILL & BARRY (PATHAK, J.] 741 assessee thereafter was dismissed by the Revising Authority. At the instance of the assessee a reference was made to the Allahabad High Court for its opinion on the following question : "Whether ammonia paper and ferro paper fall within the category of paper? 11 The High Court has expressed the view that ammonia paper and ferro paper, being chemically coated paper used for obtaining prints and sketches of site plans, were paper to which a chemical process had been applied and a
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