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TMI Blog2011 (11) TMI 594X X X X Extracts X X X X X X X X Extracts X X X X ..... CCT/90/7637 dated January 10, 2003) by which the State Government issued a clarification that the entry all kinds of papers and paper products including exercise books does not cover packing material . The said clarification issued by the Commercial Taxes Department is reproduced hereunder: S. No. 1580:F.16(26)Tax/CCT/90/7637 Dated: January 10, 2003 Kar-Niti Paripatra 2002-2003/11. Sub: Regarding entry tax on all kinds of papers. With regards to ambiguity of 'all kinds of papers and paper products including exercise books' the Government has clarified that in notification of even Nos. 133 to 136 dated December 13, 2002 (S.No. 1571 to 1574) 'all kinds of papers and paper products including exercise books' does not cover packing material. Therefore, it is directed to ensure compliance of this clarification to all of your officers. The Tax Board accordingly held that the assessee was not entitled to setoff of entry tax paid against sales tax payable on the sale of corrugated boxes manufactured by it out of paper purchased by it on which entry tax was paid by him. The relevant Notification S.O. No. 72 dated July 21, 2004 in which under entry No. 12 all ki ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nferred by section 9, Rajasthan Tax on Entry of Goods into Local Areas Act, 1999 (Rajasthan Act No. 13 of 1999), the State Government being of the opinion that it is expedient in the public interest so to do, hereby allows set-off of the entry tax paid in the State on paper from sales tax payable on the sale of finished goods on the following conditions: 1. That such paper is used as raw material or processing material in the manufacture of paper products including exercise books; and 2. That such paper products including exercise books are sold within the State or in the course of interState trade or commerce. 3. This notification will be effective with effect from August 13, 2002. therein, shall be payable at such rate as has been shown against them in column 3 of the said List, with immediate effect: LIST S. No. Description of Goods Rate of tax (%) 1 2 3 1 to 11 ... ... 12 All kinds of paper and paper products including exerci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... resent revision petition. The learned counsel for the petitioner-assessee, Mr. Dinesh Mehta, urged that the clarification issued by the State Government vide annexure 4 dated January 10, 2003 cannot override the notification, annexure 3, dated January 3, 2003 by which the set-off was allowed and, therefore, the corrugated boxes being paper products, said set-off was liable to be given by the authority concerned and the Tax Board has erred in rejecting the said claim. He relied upon the judgment of the Bombay High Court which was cited before the Tax Board also in the case of Commissioner of Sales Tax, Maharashtra State, Bombay v. Ajay Industrial Packagings Pvt. Ltd. [1995] 99 STC 35 (Bom), wherein, the Bombay High Court dealing with the case of surfane packing paper held that surfane packing paper is not only known as packing paper but is actually used only for packing. Therefore, surfane packing paper would fall under entry 24(2) of Schedule C of the Bombay Sales Tax Act, which is a wide one and covers paper of all kinds . Per contra, learned counsel Mr. Lokesh Mathur for Revenue vehemently submitted that Notification S. No. 1669 dated January 3, 2003 issued by the State Go ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment. However, the entry which calls for interpretation in the present case is that such paper on which entry tax has been paid by the assessee should be used as raw material or processing material used in the manufacture of paper products including exercise books. The words all kinds of papers and paper products including exercise books obviously do not cover the packing material, viz., corrugated boxes. The set-off of the entry tax against sales tax payable on paper products was intended to be given in terms of notification, annexure 3, dated January 3, 2003 only if the finished product which attracts sales tax falls within the entry, all kinds of papers and paper products including exercise books and not otherwise. The principle of interpretation in the form of contemporanea expositio requires that interpretation to such entry should be given in the manner in which the Department has construed the same during the contemporary period. The Kar-Niti Paripatra is merely an interpretative process and cannot be said to be beyond the jurisdiction of the State Government. The corrugated boxes manufactured by the assessee is undoubtedly a packing material and is not covered u ..... X X X X Extracts X X X X X X X X Extracts X X X X
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