Printing ink consumed in the process was not a taxable transfer of goods; the works contract assessment was set aside.

Use of ink in printing work did not, on the facts, amount to a taxable transfer of goods under the Assam Value Added Tax Act, 2003. The Court held that ink consumed in the printing process lost its identity and was not transferred as goods to the customer, so no sale of goods arose merely because it was used in executing the job. The activity was treated as a customer-specific service rather than a works contract based on the material used. The impugned order taxing the transaction as a works contract was set aside, and the matter was remitted for fresh consideration in accordance with law.

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Issues: Whether the use of ink and other materials in the course of printing work amounted to a works contract involving a taxable transfer of goods under the Assam Value Added Tax Act, 2003.

Analysis: The question turned on whether ink used in the printing process retained the character of goods so as to involve a sale or transfer of property in favour of the printer's customer. The Court held that, on the facts, no sale of goods was involved merely because ink was used in executing the printing job. Applying the principles governing the concept of 'goods' and transfer of property in a composite transaction, the Court found that ink consumed in printing loses its identity and is not transferred as goods to the person for whom the printing work is done. The reasoning was consistent with the view that such activity is a rendering of service specific to the customer rather than a taxable works contract on the material used.

Conclusion: The impugned order treating the printing transaction as a taxable works contract was set aside, and the issue was decided in favour of the assessee.

Final Conclusion: The petition succeeded on the substantive tax issue, and the matter was sent back for fresh consideration in accordance with law.

Ratio Decidendi: Ink consumed in the printing process does not amount to a taxable transfer of goods when it loses its identity and is not supplied as goods to the customer; such printing activity is not a works contract on that basis.

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