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TMI Blog1987 (7) TMI 558X X X X Extracts X X X X X X X X Extracts X X X X ..... ned with the assessment year 1980-81. The controversy is regarding the rate at which the duplicating paper and stencil paper are taxable. The Revenue brought these two items to tax as coming within item No. 21 of the First Schedule, before its amendment by Act 19 of 1980. The goods were taxed at 15 per cent at the point of first sale in the State by the respondent-dealer. In appeal, the Appellat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Nambiar as also counsel for the respondent, Mr. Zachariah. The relevant entries, with which we are concerned, are Schedule I, item 21, as it stood before the amendment by Act 19 of 1980 and Schedule I, item 97 after the amendment. The Appellate Tribunal referred to the decision of the Supreme Court in Annapurna Carbon Industries Co. v. State of Andhra Pradesh [1976] 37 STC 378 for the purpose of i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cating paper and stencil paper cannot be called as accessories to duplicating machines. 3.. The next question is whether stencil paper can be called paper. After the amendment by Act 19 of 1980, paper is covered by item No. 97 of the First Schedule. A Bench of the Orissa High Court, in the decision reported in State of Orissa v. Gestetner Duplicators (P.) Ltd. [1974] 33 STC 333 held that stencil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dule I, item No. 97 and so they could be taxed at 8 per cent. In P.K. Dewer v. State of Kerala [1974] 33 STC 73 (App.); 1970 KLT 454 a Bench of this Court had occasion to consider as to what is meant by "paper products". It was held that "paper product" means, an article different from paper and something produced with or out of paper. It was further observed that one of the test to consider wheth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... axable at 8 per cent. 6.. In the result we hold that the Appellate Tribunal was justified in holding that stencil paper will be assessed only at the rate of 4 per cent for the relevant assessment year, whereas, duplicating paper will be taxed at the general rate of 4 per cent up to 15th September, 1980 and thereafter at the rate of 8 per cent as per entry 97 of the First Schedule to the Kerala G ..... X X X X Extracts X X X X X X X X Extracts X X X X
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