Old newspapers as goods under sales tax law: prior Bench precedent was followed and the contrary tribunal view set aside.

Old newspapers were treated as goods for sales tax purposes, and the Court followed an earlier Division Bench ruling on that point. It held that a coordinate Bench decision must be applied unless overruled by a larger Bench or displaced by a contrary view, and declined to depart from the settled position. On that basis, the issue was answered against the assessee and in favour of the Revenue under the Karnataka Sales Tax Act and the Central Sales Tax Act. The Tribunal's contrary view was set aside, and the lower authority's finding was restored.

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Issues: Whether old newspapers dealt with by the assessee are goods and, if so, whether the assessee's liability arises under the Karnataka Sales Tax Act and the Central Sales Tax Act.

Analysis: The dispute was treated as covered by an earlier Division Bench decision holding that old newspapers constitute goods. The Court declined to depart from that view, observing that an earlier coordinate Bench decision must be followed unless overruled by a larger Bench or a contrary view is taken. On that basis, the reasoning adopted the earlier view and applied it to the present assessment years.

Conclusion: Old newspapers are goods, and the issue was answered against the assessee and in favour of the Revenue. The Tribunal's contrary view was set aside and the lower authority's finding was restored.

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