1989 (5) TMI 307 - HC - VAT and Sales Tax

Summary

Issues Involved:
1. Whether the sports magazine "Khela" qualifies as a "newspaper" under the Bengal Finance (Sales Tax) Act, 1941.
2. Entitlement of the petitioner to purchase raw materials at a concessional rate for the publication of "Khela".
3. Interpretation of the term "newspaper" in various statutes.
4. Maintainability of the writ application in view of a subsequent order dated 4th November, 1988.

Issue-wise Detailed Analysis:

1. Qualification of "Khela" as a Newspaper:
The primary issue is whether the sports magazine "Khela" qualifies as a "newspaper" under the Bengal Finance (Sales Tax) Act, 1941. The petitioner argued that "Khela" is a newspaper as it is registered with the Registrar of Newspapers of India and meets the definition of a newspaper under the Press and Registration of Books Act, 1867, and the Working Journalists and Other Newspaper Employees (Conditions of Service) and Miscellaneous Provisions Act, 1955. The Commercial Tax Officer, however, refused to consider "Khela" as a newspaper, stating that it is published in book form and does not cater to daily news. The court referred to various statutes and dictionary definitions, concluding that "Khela" publishes news on sports and comments on such news, thus fitting the definition of a newspaper.

2. Entitlement to Purchase Raw Materials at Concessional Rate:
The petitioner claimed entitlement to purchase raw materials at a concessional rate for the publication of "Khela" under the Bengal Finance (Sales Tax) Act. The Commercial Tax Officer had denied this benefit, arguing that "Khela" is not a newspaper. The court, however, found that since "Khela" qualifies as a newspaper, the petitioner is entitled to purchase raw materials at a concessional rate.

3. Interpretation of the Term "Newspaper":
The court considered the definitions of "newspaper" in various statutes, including the Press and Registration of Books Act, 1867, the Newspaper (Price and Page) Act, 1956, and the Working Journalists and Other Newspaper Employees (Conditions of Service) and Miscellaneous Provisions Act, 1955. The court also referred to dictionary definitions, concluding that a newspaper is a printed periodical containing public news and comments on such news. The court cited several judicial precedents, including decisions from the Orissa High Court and the Supreme Court, to support its interpretation that "Khela" fits the definition of a newspaper.

4. Maintainability of the Writ Application:
The respondents argued that the writ application was not maintainable due to a subsequent order dated 4th November, 1988, which was not challenged in the application. The court noted that the petitioner had requested a direction to issue declaration forms for purchasing raw materials for "Khela" while the writ application was pending. The court had directed the respondent to consider this request, and the subsequent order refused to issue the forms. The court found that the main issue was whether "Khela" is a newspaper, and since it concluded that "Khela" is a newspaper, the petitioner is entitled to the benefits sought.

Conclusion:
The court held that "Khela" should be treated as a newspaper, entitling the petitioner to purchase raw materials at a concessional rate. The court set aside the order dated 22nd July, 1988, and the subsequent order dated 4th November, 1988, to the extent that it restrained the petitioner from using the forms to purchase raw materials for "Khela". The writ application was allowed, with no order as to costs. The court refused the respondent's request for a stay of the order.