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TMI Blog2002 (7) TMI 759X X X X Extracts X X X X X X X X Extracts X X X X ..... ercial Tax-IV, Sivakasi, on a taxable turnover of Rs. 7,011. Subsequently, it was found that the sales of educational charts such as alphabet chart, number chart, etc., were not assessed to tax. The entire turnover of Rs. 98,440 was therefore treated by him as a sale of educational charts (printed materials) and was assessed to tax at 10 per cent. 2.1. During the appeal, the assessee urged that the text books, alphabet charts, etc., were exempted from tax as they were only reading material and children's books and, therefore, the turnover was liable to be exempted. The appellate authority considered the clarification issued by the department in K. Dis. 110999/84 Acts Cell II dated July 24, 1984 wherein it was stated that all printed materials (other than the reading books including text books, students note books and copy books) were liable to tax. The turnover of the assessee was in respect of the text books, alphabet charts, etc., which were printed and sold by the assessee. He came to the conclusion that those charts and books were "reading books" meant to educate the children. He, therefore, found that they were the "reading books" and as such exempt from the tax liability. H ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f Gods, photographs of national leaders, etc., were exempted from tax. Learned counsel also filed the clarification issued in that behalf bearing No. Cell-III/33120/92 dated March 16, 1992. It will be better to quote the three clauses by way of this clarification: (i) The printers, who print and sell reading books like alphabet, table books on places of tourist importance (Kanyakumari, Kancheepuram, etc.), religious songs, Gods, national leaders' photos, etc., are not liable to tax in view of notification dated January 6, 1969 issued by the Government. (ii) In the case of printers who undertake printing and supplying of books for specific customers, the material to be printed is obtained from the customers and after deciding on the type of paper, wrapper, cover design, general layout, etc., with customer, the printer print and supply the books to the customers. The printer uses his own goods including paper, ink, binding materials, etc. In such cases, it is only "works contract" liable to tax in terms of section 3-B of the Tamil Nadu General Sales Tax Act and in the light of the Supreme Court decision reported in [1989] 73 STC 370 (Builders Association of India v. Union of Indi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion available to the sale of reading books including the text books is available to the printer who prints the alphabet charts and sells them? 7.. In so far as the first question is concerned our task has become fairly easy because of the judgment of this Court in State of Tamil Nadu v. Mundran Kala Mandir [1980] 46 STC 365. The question which fell for consideration there was whether the guide map of Greater Bombay having some material to read could be said to be a book. What fell for consideration was a map simpliciter with some information about the city of Bombay and the tourist spots therein on the next page. The learned Judges agree that the earlier judgment in S.R. Company v. State of Tamil Nadu [1978] 42 STC 99 (Mad.) that the entry was not happily worded and that the reading books should be understood as books for reading or books meant for reading. In that case also, the said test was applied and the learned Judges had held that three publications which fell for consideration were books for reading so as to be eligible for exemption. Relying on that decision, the learned Judges in Mundran Kala Mandir case [1980] 46 STC 365 (Mad.), also pointed out that the map contain ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng but a "reading book". This premise is further strengthened by the subsequent clarification issued by the department dated March 16, 1992 wherein the books like alphabet charts, table books on places of tourist importance, religious songs, images of Gods, photos of national leaders, etc., are also considered to be the "books" and the printers of these materials, who sell such articles are also held entitled to the exemption vide the notification dated January 6, 1969. It is for this reason that we ventured to quote all the three clauses of the clarification. 9.. There would be one other way of looking at this, that is, merely because a person prints the alphabet charts which are undoubtedly the reading books and sells them could he be said to be excluded from the exemption. In our opinion, the said course would not be open in view of the clarification issued on May 23, 1988 bearing No. Acts Cell-II/51741/88 wherein a clarification was issued to the effect that reading books, including the text books, were exempt from the tax. That would completely delete the "dealer aspect" of the matter. After all, if a person prints reading books and sells them he could be safely called the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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