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TMI Blog1973 (7) TMI 117X X X X Extracts X X X X X X X X Extracts X X X X ..... ivered. In other cases, it is found that he has issued both the bills on the same dates, the dates on which the printed material was delivered. The petitioner was assessed to sales tax for the entire amount he received both for the sale of paper and for printing charges. The petitioner disputed the levy; and the matter came to this court once. This court remanded the case for fresh consideration indicating that the petitioner would be liable to sales tax only if what he delivered to his customers-the printed material-was paper products . After the remand, the Tribunal considered the matter afresh and held that what the petitioner delivered to his customers was paper product. It is the correctness of this decision that is being challenged i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y be incidental. if so, the supply of the printed material will not be sale of goods and the transaction will not be taxable either. The second mode of looking at the question is to treat the contract as really two contracts, one for the supply of paper and the other a contract for printing. Then, the first contract for the supply of paper will involve a sale of goods and that is taxable too. But, in the case before us, paper is taxable only at the first sale point; and the petitioner's sale not being the first sale, is not taxable. Therefore, even if the transaction is to be viewed in this manner, even then the sale of paper cannot be taxed. And the money received as printing charges cannot also be taxed, because that involves no sale ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... placed before us regarding the meaning of the word paper and also regarding the meaning of the expression paper product . Paper evidently has two meanings, one a restricted meaning and the other a wider or extended meaning. Paper is not defined in the Sales Tax Act; and, therefore, the word has to be given the meaning it has in common parlance or in popular language, i.e., the word must be understood in the sense in which people conversant with the subject-matter of the statute understand it (vide Ramavatar Budhaiprasad v. The Assistant Sales Tax Officer, Akola [1961] 12 S.T.C. 286 (S.C.).). The Shorter Oxford English Dictionary says that paper is a substance composed of fibres interlaced into a compact web, made from linen and co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ably used only in the first meaning, the meaning the word has in common parlance-the meaning the word has in popular language-and not in any wider or special connotation. The Shorter Oxford English Dictionary defines product , inter alia, as that which is produced by any action, operation, or work . If this meaning of the word product is applied to the case before us, it may certainly be said that the printed material is a product ; it is a product of the action, operation, or work-the printing. But, can it be said that the printed material is a product of paper? Obviously the answer must be no . If a renowned artist (painter) executes one of his masterpieces on a piece of paper, can it be said that the picture is a product of pape ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the decision of this court by Isaac, J., in Srinivasa Printing Works v. Sales Tax Officer, Kasaragod [1967] 20 S.T.C. 278, which was brought to our notice and on which some reliance was also placed. The petitioner in that case executed job-works as printer; and he was taxed on the amounts received by him in consideration for such works. Our learned brother held that the execution of works done by a printer did not involve any sale , nor did the charges received by him constitute turnover . In the course of the judgment, the learned judge discussed the question as to what was meant by the expression paper product . The learned Judge observed: ............It is doubtful whether a printed matter or exercise book or ledger book is a prod ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er and something produced with or out of paper. This appears to be quite obvious. But, this does not solve the problem. It is suggested during the course of the arguments before us that for paper to become a paper product the main characteristic or the main utility of paper must be lost and a new characteristic or a new utility is acquired. The main characteristic or utility of paper is to be printed upon, to be drawn upon, to be written upon, etc., and if by some process (action, operation or work) that characteristic or utility is lost and the product acquired some other characteristic or utility, then the product is a product of paperso the argument has proceeded. For example, (as it is now common) if ice-cream tumblers are made o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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