TaxTMI 
TaxTMI 
2012 (8) TMI 905
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.... held that post-it-paper falls under the category of non-scheduled goods and liable to tax at the rate of 12.5% under Section 4(1)(b) and Scotch-Magic-Self-Adhesive Tapes in rolls not exceeding 20cm are covered under Entry 143 of the Notification dated 30th September 2005 and liable to tax at the rate of 4% under Section 4(1)(a)(ii) of the Act. The appellant being aggrieved by the same sought for review and rectification of the order dated 17-11-2006. The said rectification application was rejected by the ACAR on 26-3-2007. Being aggrieved by the clarificatory order passed by the ACAR, the appellant filed STA No.10/2007 before this court. This court after examining the matter in detail found that without examining the matter and without assigning any reasons, ACAR rejected the application and held that the 'post-it-paper' will not fall under Entry 69(i) which is contrary to law and accordingly set aside the said order. Since the said Authority has been abolished, the matter was remanded to the Commissioner of Commercial Taxes for reconsideration. The Commissioner for Commercial Taxes after examining the matter by its order dated 16-4-2010 held that by importing the papers f....
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....se. The Entry 69(i) covers all kinds of papers except photographic paper. Just because adhesive is used to one side of the paper which is generally used as a flag and also used for writing purpose, it cannot be treated as the goods that falls under the 'residuary clause' and attract the tax at the rate of 12.5%. The finding recorded by the Commissioner of Commercials Taxes is contrary to law. He also relied upon the judgment reported in (1990) 78 STC 385(Bom) in the case of ADDITIONAL COMMISSIONER OF SALES TAX, MS, BOMBAY v/s AFSONS INDUSTRIAL CORPORATION and in (1985) 59 STC 87 (Kar) in the case of BUSINESS FORMS LIMITED v/s COMMISSIONER FOR COMMERCIAL TAXES, KARNATAKA. 5. On the other hand, Smt.S.Sujatha, learned Additional Government Advocate argued in support of the clarificatory order passed by the Commissioner and contended that when the papers have been cut into pieces and produced as Post-it-Paper with the adhesive on one side, the paper loses its identity and become a distinct commercial commodity from the paper of any kind. It has not fallen under the grouping of various papers enumerated under the Entry 69(i) of the Act. It can be attached to the wall, desk, com....
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....rder has been questioned in this appeal. 8. Entry 69(i) of the III Schedule covers the papers of all kinds including Ammonia paper, blotting paper and straw box, triplex boards, and like other, but excluding photographic paper. Entry 69(i) and 71 of the III Schedule reads as under: 69.i)Paper of all kinds including ammonia paper, blotting paper, carbon paper, cellophane, PVC coated paper, stencil paper, tissue paper, water proof paper, art boards, card boards, corrugated boards, duplex boards, pulp boards, straw boards, triplex boards and the like, but excluding photographic paper. (ii) Waste paper, paper waste and newsprint. 71. Printed materials other than books meant for reading; stationary articles namely.- Account books, paper envelopes, diaries, calendars, race cards, catalogues, greeting cards, invitation cards, humour post cards, picture post cards, cards for special occasions, photo and stamp albums, computer stationery. 9. Reading of the above entries makes it clear that Entry 69(i) covers papers of all kind, it obviously makes it clear that all kinds of paper including the paper referred to "and the like" refers to papers of different kinds which w....
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....ively less scope for doubt would accordingly stand automatically covered by the main items in the entry. 10. The Hon'ble Supreme Court in a judgment reported in (1977) 39 STC 8 SC (STATE OF UTTAR PRADESH v/s KORES (INDIA) LIMITED) had an occasion to examine the word 'paper' used in Uttar Pradesh Sales Tax Act. The Court after referring various shades of the meaning finally observed in para 11, which reads as under: It is clear that in popular parlance, the word 'paper' is understood as meaning a substance which is used for bearing writing, or printing, or for packing, or for drawing on, or for decorating, or covering the walls...." This should be the meaning with which we have to understand the scope of the entry 125 in this case also. If the goods sold by the assessee is generally used for writing, printing, packing or for drawing, decorating or covering the wall, then they must be classified as "paper" as popularly understood. Paper may be presented in plain sheets or in exercise books or in rolls. Paper may be in small pieces or in big rolls. It may be thick or thin, light or heavy, bleached or coloured, according to the requirements of ....