Printing job-work turnover excludes labour charges, while paper cost remains taxable in the reported assessment analysis.

In a printing job-work arrangement where the printer supplies paper and labour, the receipts are split into two components: paper cost and labour/printing charges. The stated legal position is that the statutory turnover concept does not extend to labour charges where the printer is not selling his own goods, so that component is not taxable as turnover. The cost of paper, however, remains part of taxable turnover. The document states that the assessment was unsustainable to the extent it included printing charges and that reassessment should exclude labour charges while retaining the paper cost.

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Issues: Whether, in a printing job-work contract where paper is supplied by the printer, the receipts represent taxable turnover in full or whether the labour component is deductible and only the paper cost is assessable.

Analysis: The receipts from the printing work comprised two distinct elements, namely the cost of paper and the charges for labour and printing. The statutory explanation to the definition of turnover covered sums charged for work done in respect of goods sold, but that provision did not apply where the printer was not selling goods belonging to him. In the case of printing judgments or similar work, the printer supplies paper and labour, but the printed product is not a sale of goods by him. The labour component is therefore not chargeable, though the paper cost remains part of the taxable turnover.

Conclusion: The assessment could not be sustained to the extent it included printing charges. The petitioner succeeded, and the respondent was directed to reassess the taxable turnover after excluding labour charges and including only the cost of paper.

Ratio Decidendi: In a printing job-work arrangement, labour charges do not form part of taxable turnover as they do not represent consideration for a sale of goods, while the cost of paper supplied remains taxable.

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