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TMI Blog1988 (5) TMI 353X X X X Extracts X X X X X X X X Extracts X X X X ..... darsini Chemicals, Khosala Lamp Industries and Konark Television? (2) Whether, on the facts and in the circumstances of the case, the printing charges received by the petitioner have been rightly treated as sale price can be included in the taxable turnover of the petitioner?" 2.. It appears from the statement of facts submitted by the Sales Tax Tribunal that the petitioner-firm, a registered dealer under the Act (hereinafter referred to as the "dealer"), is a manufacturer of cardboard boxes, deals in wax papers and wrappers and also undertakes printing work on the above materials. In the assessment year 1975-76, the dealer sold goods to other dealers as described below: ------------------------------------------------------------------ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or printing on the ground that the dealer had supplied paper and other materials from its own stock, got the printing work done in its own press and thus the contracts were composite ones which could not be bifurcated. Accordingly, sales tax on the aforesaid turnover was demanded. 3.. In order to answer the first question, it is necessary to quote section 5(2)(A)(a)(ii) of the Act: "5. Rate of tax.- * * * (2)(A) In this Act, the expression 'taxable turnover' means that part of a dealer's gross turnover during any period which remains after deducting therefrom: (a) his turnover during that period on- * * * (ii) sales to a registered dealer of goods specified in the purchasing dealer's certificate of registration for resale by him in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... declarations in form D and form XXXIV which were of no avail to claim exemption of sales tax. 4.. Mr. R.B. Roy, learned counsel appearing for the dealer, did not press that exemption of sales tax was available under section 5(2)(A)(a)(ii) of the Act, because the purchasing dealers were not entitled to resell the goods inside the State according to the endorsement made in the registration certificates. He urged that at least Sajitha Bakery, Chilika Pharmaceutical Laboratories and Konark Televisions who furnished declarations in form D were entitled to purchase wrappers and cartons as raw material for the purpose of manufacture inside the State as contemplated in the fifth proviso to section 5(1) of the Act. Therefore, these purchasing deale ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n to satisfy the sales tax authorities about it at the time of assessment. If the selling dealer has obtained the necessary declaration from the purchasing dealer that the article is included as raw material in the registration certificate of the purchasing dealer, he is entitled to the concessional rate of tax and the sales tax authorities have no right to embark upon an enquiry as to whether the articles can be used as raw material by the purchasing dealer. In view of the principles laid down in these two decisions, it is necessary to determine if the purchasing dealers, Sajitha Bakery, Chilika Pharmaceutical Laboratories and Konark Televisions were entitled to purchase wrappers and cartons as raw material for the purpose of manufacture o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the assessment year 1976-77. Therefore, it Prima facie seems that in the financial year 1975-76 this dealer was not entitled to purchase cartons and packing materials for the purpose of manufacture of T.V. sets. Further, it is not possible to ascertain if Konark Television is the same as the Orissa Small Industries Corporation Limited or a separate dealer altogether. The attested copies of registration certificates of other purchasing dealers are not available on record. The lower forums did not examine this aspect of the case. Therefore, examination of materials in this regard will be incomplete without asking for further particulars and without hearing the learned counsel for both parties. This can best be done if the case is remitted b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ting should be excluded from the dealer's taxable turnover. 8.. The facts of the case of State of Orissa v. Sri D.N. Joshi [1971] 27 STC 100 (Orissa) were that the dealer supplied paper from his own stock and got the printing done on the paper according to the orders of the customers and the receipts granted by him showed separately the payments made for the paper and printing. The question that arose for consideration was whether the cost of paper only should be taxed and not the full value of the sale memos. It was observed that if the agreements were that the price of paper would be paid separately and that the printing would be done on that paper, then sales tax was not leviable on the cost of printing. But in that case the dealer did ..... X X X X Extracts X X X X X X X X Extracts X X X X
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