Exercise books exemption covers examination answer books, which remain outside sales tax under the relevant entry.

Answer books supplied to students for writing examinations were treated as "exercise books" within the relevant exempting entry because the phrase covered all such books without exception. The court found no logical distinction between an exercise book used during study and an answer book used in an examination, and held that the mode of supply for examination use did not change the character of the goods. On that reasoning, examination answer books were exempt from sales tax under the entry.

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Issues: Whether answer books supplied to students for writing answers in examinations are "exercise books" and therefore exempt from sales tax under entry No. 10 in the Schedule to the Act.

Analysis: The entry exempted books, exercise books, slates, slate pencils and periodical journals, and the expression "exercise books" was treated as covering all kinds of such books without exception. Examination answer books were held to answer that description, as there was no logical distinction between an exercise book used during studies and an answer book used in an examination. The fact that the books were supplied for use in examinations and not directly purchased by the student was held immaterial.

Conclusion: Examination answer books are exercise books within entry No. 10 and are exempt from sales tax. The revision therefore failed.

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