1989 (2) TMI 397 - HC - VAT and Sales Tax

Summary

Issues: Interpretation of the term "paper" in an exemption G.O. for tax purposes.

In the judgment delivered by the Andhra Pradesh High Court, the issue revolved around whether the term "paper" in a specific exemption Government Order (G.O.) includes "paper board." The G.O. in question was issued in 1961, prior to the insertion of a new entry (entry 143) in the First Schedule related to "paper." The court highlighted that the exemption G.O. was issued to encourage the manufacture of handmade paper and that the term "paper" has a wide meaning, as evidenced by the detailed description in entry 143. The assessing authority had excluded "paper board" from the scope of the term "paper," but the Tribunal disagreed, emphasizing that the clarification issued by the Government itself explicitly stated that the exemption applied to "all kinds of paper, including paperboard." The court agreed with the Tribunal's interpretation, stating that the expression "paper" should be understood in its broader sense to include "paper board" within the exemption. The court also noted that after the insertion of entry 143, the exemption G.O. would likely be linked to that entry, further supporting the inclusion of "paper board" within the exemption. However, the court refrained from providing a definitive opinion on this linkage. Consequently, the tax revision cases were dismissed, affirming the Tribunal's decision, with no costs awarded.