Waste paper qualifies as paper under the Karnataka Sales Tax schedule and is excluded from residuary taxation.

Waste paper is treated as "paper" within entry 3 of Part P of the Second Schedule to the Karnataka Sales Tax Act, 1957, because the entry covers "paper (all kinds)" and is drafted broadly enough to include varieties not confined to writing, printing or packing. As the commodity falls within a specific schedule entry, it cannot be assessed at the residuary rate as unscheduled goods. The article therefore states that waste paper is taxable under the specific entry and not under section 5(1) as unscheduled goods.

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Issues: Whether waste paper sold by the assessee is "paper" falling under entry 3 of Part P of the Second Schedule to the Karnataka Sales Tax Act, 1957.

Analysis: Entry 3 of Part P covers "paper (all kinds)" and expressly includes several varieties of paper that may not be used for writing, printing or packing. The description is both inclusive and exclusive, and waste paper is not excluded. A commodity falling within a specific schedule entry cannot be taxed under the residuary rate. The broad statutory wording shows that the legislative intent was to treat all kinds of paper as covered unless specifically excluded. Even on the user-based understanding of paper, the waste paper in question could still be used by others for printing, writing or packing.

Conclusion: Waste paper is paper within entry 3 of Part P of the Second Schedule to the Karnataka Sales Tax Act, 1957, and is not taxable as unscheduled goods under section 5(1).

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