1987 (7) TMI 558

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ndment by Act 19 of 1980. The goods were taxed at 15 per cent at the point of first sale in the State by the respondent-dealer. In appeal, the Appellate Tribunal held that the goods are not taxable under the First Schedule, item No. 21. It was held that both stencil paper and duplicating paper cannot be taxed as accessories to duplicating machines. However, duplicating paper is paper and after amendment it will come under item No. 97 of the First Schedule and taxable at 8 per cent. Till 15th September, 1980 (date of amendment) duplicating paper was "paper" and was liable to tax at the general rate at 4 per cent. Even after the amendment, stencil paper cannot be considered as paper nor can it be considered as paper product. So it could be ta....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... next question is whether stencil paper can be called paper. After the amendment by Act 19 of 1980, paper is covered by item No. 97 of the First Schedule. A Bench of the Orissa High Court, in the decision reported in State of Orissa v. Gestetner Duplicators (P.) Ltd. [1974] 33 STC 333 held that stencil paper is not paper. The court referred to the decision of the Supreme Court, that of the Allahabad High Court and of this Court, to hold that stencil paper is not "paper". We concur with the said decision. We hold that stencil paper will not come under the First Schedule, entry 97, even after the amendment by Act 19 of 1980. 4.. The further question is whether duplicating paper will come within the First Schedule, item No. 97. It was not d....