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TMI Blog2018 (5) TMI 1283X X X X Extracts X X X X X X X X Extracts X X X X ..... aint themselves with the current news. Information is news when it is fresh and new. So when newspaper becomes old, it loses its characteristic as newspaper. When unsold surplus copies of newspapers are disposed of by weight, their sale cannot be regarded as the sale of newspapers. However in the case of Sait Rikhaji Furtarnal v. State of Andhra Pradesh [1990 (8) TMI 344 - SUPREME COURT OF INDIA], it was held that, old newspapers would be covered by the word newspapers in entry 54 of list II and entry 92 of list I of the Seventh Schedule to the Constitution of India and it is, therefore, beyond the competence of the State Legislature to impose Sales Tax on the sale of old newspapers. In case of conflict between earlier and later decisions of Supreme Court, each consisting of equal number of Judges, later decision prevails. - Govindanaik G.Kalaghatigi v. West Patent Press Company Ltd and Anr. [1979 (2) TMI 202 - KARNATAKA HIGH COURT] (Five Judge Bench) There are no manifest illegality, warranting reversal of the order of the Tribunal - Tax Case (Revision) is dismissed. - Decided against the revenue. - Tax Case No.94 of 2018 - - - Dated:- 6-4-2018 - S. Manikumar And V. Bh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f ₹ 7,61,710/- at 10% is in order. 6. With reference to the turnover of ₹ 70,134.00 which has not been covered by C-Form the Assessing Officer has levied tax at 10%. The Authorized Representative has not produced any C-Form even at the time of final hearing. I therefore sustain the assessment made on this turnover of ₹ 70,134/-. In fine, the appeal stands DISMISSED. 4. Against the said order, the assessee has filed a second appeal in T.A.No.38 of 2003, before the Tamil Nadu Sales Tax Appellate Tribunal (Additional Bench), Chennai and on a careful consideration of the submissions made, vide order dated 28.02.2007, the Tribunal held as follows: Rival submissions and connected records were perused. There is some force in the arguments of the learned counsel that the goods sold by the appellants is eligible for exemption as per the provisions of the Act. On perusal of the records it is observed that the appellants have sold old newspaper which is not liable to tax. Hence the sales turnover of the old news paper sold for the value of ₹ 7,61,710/- is not liable to levy of tax. In the case of Tvl. Sait Rikhaji Furtarnal and Another v. State ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of ₹ 7,61,710/- is therefore not warranted and hence set aside and deleted. Thus we consider that the order of the learned Appellate Assistant Commissioner in this regard is not sustainable in the eye of law. Hence, the learned Appellate Assistant Commissioner order is set aside and deleted. On perusal of records it is seen that the appellants have sold old newspapers to the outside dealers of Tamil Nadu and claimed exemption. However the learned Assessing Officer rejected their contention of the claim of exemption on the inter-state sales of old newspapers and treated the sales as inter-state sales only and demanded the appellants to file 'C' form declaration. But th appellants have filed 'C' forms for the value of ₹ 50,042/- out of the sales turnover of ₹ 1,20,176/- with protest. Thus we have seen from the records that the sales effected to inter-state dealers also exempted from tax as the goods namely old news papers is naturally exempted from sales tax as per the decisions of higher judicial forums cited supra. Therefore, we are of the considered view that the sales turnover of ₹ 70,134/- sold outside the state of Tamil Nadu is full ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lone they would be eligible for exemption from tax. 4. The Tribunal has erred in not considering that as per entry 82 of Part B of the First Schedule to the Tamil Nadu General Sales Tax Act, 1959, waste paper and waste paper (old) are taxable at 4% and the said entry did not distinguish between old waste paper and old news paper being sold as waste paper Heard the learned counsel appearing for the parties and perused the materials available on record. 7. In Indian Express (P) Ltd. vs. State of Tamilnadu reported in 67 STC page 474, the issue before the Hon ble Supreme Court was whether the sale of Old Newspapers is exempt from payment of tax. It was argued that when surplus copies of the news papers were sold, they possessed the character of newspaper and were exempt from sales tax. However, it was held by the Supreme Court that when newspapers are sold to the reading public, they are sold as medium containing information regarded as news. They are purchased by members of public to acquaint themselves with the current news. Information is news when it is fresh and new. So when newspaper becomes old, it loses its characteristic as newspaper. When unsold surplus copies o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ined the question with regard to High Court decisions. At Paragraph 4 of the judgment, this Court held that, 4. Before we deal with the question, involved in the appeal, it is necessary to examine the propriety of the procedure adopted by the learned District Judge, The normal rule as to the precedents is that Subordinate Courts are bound in the absence of any decision of the Supreme Court to follow the decision of the High Court to which they are subordinate. Where, however, there is a conflict between two decisions of the High Court, the rule to be adopted is as follows : where the conflict is between the judgment of a Single Judge and a Bench or between a Bench and a Larger Bench, the decision of the Bench or Larger Bench as the case may be, will have to be followed. But where the conflict is between two decisions both pronounced by a Bench consisting of the same number of Judges and the subordinate Court after a careful examination of the decision came to the conclusion that both of them directly apply to the case before it, it will then be at liberty to follow that decision which seems to it more correct, whether such decision be the later or the earlier one. (iii) A ..... X X X X Extracts X X X X X X X X Extracts X X X X
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