2000 (12) TMI 796

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....sp; RAJENDRA BABU, J.-Leave granted in S.L.P. (C) Nos. 7302-7303 of 1999. 2.. The appellants manufacture "craft papers" which is claimed to be used as packing/wrapping material. The appellants applied for recognition certificate under section 4-B of the U.P. Trade Tax Act, 1948 (hereinafter referred to as "the Act"), to avail of the exemption provided thereunder. The appellants were granted the recognition certificate which enabled them to purchase raw material and packing material without payment of any tax in respect of machinery for which the purchase was to be made at concessional rate. On the basis of a Full Bench of the Allahabad High Court in Lalji Board Industries v. State of U.P. in Civil Miscellaneous Writ Petition No. 763 of 19....

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....eadings to show that the manufacturing process of the craft paper manufactured by it or had made any averment that the product is so adopted that it is meant to be used exclusively as packing material and cannot be used as paper. The word "paper" in the exclusionary clause of the notification dated December 31, 1976 is used in its generic sense and the term as understood in the common parlance and commercial sense includes "craft paper" manufactured by the appellants. "Paper" as understood in common parlance and commercial sense can be used for writing, printing, packing and wrapping purposes and, therefore, "craft paper" does not cease to be "paper" merely because it is also used for packing purposes. Indeed, any type of paper can be used ....