1998 (3) TMI 646 - HC - VAT and Sales Tax

Summary

The High Court of Andhra Pradesh upheld the Sales Tax Appellate Tribunal's decision that materials used by an assessee for processing work on behalf of a customer could not be taxed. The assessee, engaged in printing magazines, purchased film, chemicals, and zinc plates from outside the State for printing work done on paper supplied by the customer. The Commercial Tax Officer sought to tax these materials, but the Tribunal ruled there was no transfer of property to the customer. The Court noted that post-amendment, consumables used in works contracts are deemed sold for tax purposes, but in this case, the materials remained the property of the assessee and were not transferred to the customer. The Tribunal's decision was upheld, and the revision was dismissed with no costs.