The SC dismissed the appeal and upheld levy of tax under...

The SC dismissed the appeal and upheld levy of tax under s.3F(1)(b) of the U.P. Trade Tax Act, 1948, holding that the appellant is liable to pay tax on ink and processing/packing materials used in printing. The Court applied the principle that transfer of property in goods occurs when goods are incorporated in the works, and rejected the "dominant intention" test for works contracts. Because the appellant failed to furnish an itemised breakdown, the Assessing Authority properly assessed value; chemically altered ink and constituent chemicals were held to be transferred as goods. All statutory conditions for levy under s.3F(1)(b) were found satisfied.