1986 (4) TMI 321

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.... him), for the respondent.   S.T. Desai, Senior Advocate (P.N. Ramalingam and A.T.M. Sampath, Advocates, with him), for the appellant.   --------------------------------------------------   ORDER   This appeal by special leave is directed against the judgment of the High Court of Madras allowing a revision petition filed by the respondent in a case arising out of an....

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....ted the contention and held that the sales were taxable as the transactions were ancillary to the business of publishing newspapers. But a further appeal before the Sales Tax Appellate Tribunal, Madras was allowed in the view that the unsold newspapers had been sold as waste paper and that what was sold was not a product of the newspaper business and further that the appellant could not be said to....

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....ith the main business of printing and publishing newspapers. In this appeal learned counsel for the appellant contends that when the surplus copies of the newspapers were sold they possessed the character of newspapers and were, therefore, exempt from sales tax. It seems to us clear that when newspapers are sold to the reading public they are sold as a medium containing information regarded as ....

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....rded as a business carried on by the appellant. It was an activity which he pursued regularly, and the motive was to earn a profit. It was incidental to the business carried on by the appellant of printing and publishing newspapers. In the course of carrying on the business of printing and publishing newspapers, it is inevitable that a number of copies should remain surplus and that they should, t....