STATE OF UTTAR PRADESH versus M/S. KORES (INDIA) LTD.

Citation: [1977] 1 S.C.R. 837 · Decided: 18-10-1976 · Supreme Court of India · Bench: HANS RAJ KHANNA · Disposal: Dismissed

Cited by 2 judgment(s) · see the full citation network in Lexace

Judgment (excerpt)

837 
STATE OF UTTAR PRADESH 
v. 
M/S. KORES (INDIA) LTD. 
October 18, 1976 
[H. R. KHANNA AND JASWANT SINGH, JJ.] 
U.p, Sales Tl!fx Act, 1948, s. 3-A, Notification issued under-Rule for con-
structing words-W/zetlzer carbon paper is taxable as 'Paper'-Whetlzer ribbon is 
accessof'y or part of typewriter. 
The Governor of U. P. issued a Notification under Section 3-A of the U.P. 
Sales Tax Act/ 1948, and the Sales Tax Officer (Section IV) Kanpnr, ordered the 
respondent company to pay tax on the turnover of carbon paper at 6%, and that 
A 
B 
of ribbon at 10%, as per entry 2 of the Notification.· The respondent challenged 
C 
the order in a :writ petition before the High Court. contending that carbon paper 
was not 'paper' with the meaning of entry 2 and its turnover was therefore to 
be assessed at the rate of 2% prescribed for unclassified goods, and that 'ribbon' 
being an accessory and not a part of -the typewriter, could only be taxed at the 
rate of 6 % and. not l 0%. The High Court allowed: the writ and Quashed the 
levy. 
The appellant contended that carbon paper does not lose its character as 
!Japer in spite of being subjected to chemical processes, and that ribbon is not an 
D 
accessory but an essential part of the typewriter. 
Dismissing thCI appeal the Court, 
HELD :: (1) A word which is not defined in an enactment has to be under-
stood in its popular and commercial sense with reference to the context in which 
it occurs. It has to be understood according to the well established canon of con-
struction in th~ sense in, which persons dealing in and using the article understand 
it. [839' A-Bl 
Allol'lley General v. Winstanley (1831) 2 Dow & Clark 302==(1901) 6 E.R. 
740, and Grenfell v. Commissioner of Inland Re1·e11ue (1876) l Ex. D. 242 at 
p. 248 applied. 
E 
(2) The word 'paper· is understood as meaning a substance which is used for 
bearing writing or printing, or for packing, or for drawing on, or for decoraling, 
or covering the walls. Carbon paper cannot be used for these purposes but is used 
for making replicas or carbon copies, and cannot i:roperly be described as paper, 
[839 G, 840 A-Bl 
F 
K. Ki/bul'll & Co. Ltd. v. Commissioner of Sales Tax, U.P. 
Lucknow 
(31 
S.T.C. 625), Sree Rama Trading Company v. State of Kera/a (28 S.T.C. 469), 
State of Orissa v. Gestetner Duplicators (P) Ltd. (33 S.T.C. 333) Commissioner 
of Sales Tax, U.P. v. S. N. Brothers (31 S.T.C. 302) applied. 
(3) The above mentioned rule of construction equally applies to ribbon. It 
i·s an al:Cessory and 110t a part of the typewriter, though it may not be possible 
t..o type out any matter without it. [841 D-E] 
'I 
State of' Mysore v. Kores (India) Ltd. (26 S.T.C. 87) approved. 
CIVIL APPELLATE JURISDICTION : Civil Appeal No. 
1773 
of 
19'71. 
(From the Judgment and order dated 20-2-1970 of the Allahabad 
High Court in Civil Misc. Writ Petition No. 2943/69) 
• 
G 
S. C. Manchanda and 0. P. Rana, for the Appellants. 
H 
V. S. Desai, P. B. Agarwala and B. R. Agarwala, for the Respon-
dents. 
A 
B 
c 
D 
E 
F 
G 
H 
838 
SUPREME COURT REPORTS 
LI 97'1] 1 S.C.R. 
The Judgment of the Court was delivered by 
JASWANT SINGH, J.-This appeal by certificate which is directed 
against 0e judgment and _order elated February 20, 1970, passed 
by the High Court of Judicature at Allahabad in writ petition No. 
2943 of 1969 raises two interesting questions viz. (1) whether carbon 
paper is paper falling within the purview of the word 'paper' as used 
in serial No. 2 of Notification N:o. ST-3124/X-1012(4)-1964 dated 
July 1, 1966, issued by the Governor of Uttar Pradesh in exercise 
of the power vested in him under section 3-A of the u.-e. _Sales 
fax Act, 1948 (U.P. Act No. XV of 1948) so as to be liaole to 
sales tax at the point and at the rate specified in the Schedule to tl1e 
Notification and (2) whether ribbon is an accessory or a rent of the 
typewriter. 
It appears that the respondent which is a company incorporated 
under the Indian Companies Act dealing in carbon 
paper, 
type-
writer, ribbon, stepler machines and stepler pins, despatches 
the 
said goods from its head office at Bombay to its branch office at 
Kanpur wherefrom sales thereof are effected in the State of Uttar 
Pradesh. 
During the course of the assessment proceedings for the 
assessment year 1956-57, the respondent claimed that carbon paper 
not being paper falling within the ambit of Entry No. 2 
of 
the 
Schedule to the aforesaid Notification but a specialise

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