Old newspapers sold as such remain exempt from sales tax when Supreme Court precedent prevails over earlier contrary views.

Old newspapers sold as such were treated as falling within the constitutional concept of newspapers and, on that basis, outside the State's sales tax power. The High Court preferred the later Supreme Court ruling over an earlier contrary view, holding that where decisions conflict, the later Supreme Court decision governs. It accepted the Tribunal's view that newspapers disposed of as old newspapers do not lose their tax character merely because they are sold as waste paper. The departmental circular did not change the legal position, and the challenge to the exemption failed.

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Issues: Whether the sale of old newspapers, even when disposed of as waste paper, is exempt from sales tax and beyond the State's taxing competence.

Analysis: The assessment was sustained by the departmental authorities on the footing that the goods were waste paper, but the Tribunal found that old newspapers sold as such retained the character of newspapers for tax purposes and were therefore exempt. The High Court noted the earlier view that old newspapers disposed of by weight may lose their newspaper character, but gave controlling effect to the later Supreme Court decision which held that old newspapers, when sold as such, fall within the constitutional entries relating to newspapers and cannot be subjected to State sales tax. Applying the rule that where there are conflicting decisions the later decision of the Supreme Court prevails, the Court found no manifest illegality in the Tribunal's order. The additional reliance on the departmental circular did not alter the legal position.

Conclusion: Sale of old newspapers sold as such is exempt from sales tax and the revision fails.

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