9911796707
TMI Blog1970 (2) TMI 118X X X X Extracts X X X X X X X X Extracts X X X X ..... Tribunal is correct in holding that in all cases where the dealer charged in the sale bills separately for the cost of paper, printing and binding, the cost of paper only should be taxed and not the full value charged. (2) Whether the mere mention of cost of paper, printing charges and binding separately in the bills by the dealer in respect of sale of printing materials to customers, entitle ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me cases paper was supplied to him, and mere printing was done on those papers. Such sales were exempted from sales tax as they were pure works contracts. There were however other cases in which the dealer himself supplied printed material. 3.. The first two assessing authorities were of opinion that the printed materials sold were liable to tax. The Tribunal, however, held that the price of pap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se would be analogous to the first type of cases where the purchaser purchases the papers from outside and supplies the same to the printer. Another type of case would be where the purchaser does not enter into any separate agreement but merely asks the printer to supply printed materials. The obligation to purchase the papers and to print thereon remains with the seller. In such a case, the contr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt. Here, the factual position is clear. The agreement was for purchase of printed materials. Charging separately for the paper and printing does not alter the essential character of the agreement. 6.. We accordingly hold that the printed materials were liable to sales tax. The Tribunal took a wrong view in separating the cost of printing from that of the paper and in saying that paper alone was ..... X X X X Extracts X X X X X X X X Extracts X X X X
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