2011 (2) TMI 1241

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.... Ramachandran Nair, J:-   The short question raised in the revision filed by the assessee is whether the paper imported by them and sold under the name "Euro craft waste paper" falls under entry 102 of the First Schedule to the Kerala General Sales Tax Act, 1963 taxable at four per cent or whether the item falls under entry 106 of the same Schedule taxable at eight per cent. We have heard ....

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....port for removing excess ink from printed currency will not change the identity of the product from paper to anything else and so much so, the item falls under entry 106. The Tribunal upheld the claim of the Department by reversing the first appellate authority's order in favour of the assessee and it is against this order of the Tribunal the petitioner has come up with this revision before us. &n....

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.... 102, the petitioner's claim is tenable. We find force in the contention of counsel for the petitioner because all packing materials covered by entry 102 are given concessional rate at four per cent. It is common knowledge that waste paper is extensively used in packing and there is no controversy that the item imported and sold by the petitioner is not used as packing material by the purchasers. ....

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....ntry 102 because only "waste paper" used as packing material falls under entry 102. In this case admittedly paper imported and sold by the petitioner was already used up for its primary and intended use for which it was specifically made, i.e., as an absorbent material for use in printing where excess ink in the course of printing currency is removed with the paper and so much so, it is waste pape....