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TMI Blog1985 (11) TMI 56X X X X Extracts X X X X X X X X Extracts X X X X ..... . Tulzapurkar and R.S. Pathak, JJ. S.C. Manchanda, Senior Advocate (H.K. Puri, M.N. Tandon and Randhir Chawla Advocates, with him), for the respondent. S.T. Desai Senior Advocate (H.K. Puri, M.N. Tandon and Randhir Chawla Advocates, with him), for the respondent. [Judgment per : R.S. Pathak, J.]. -The short question in this appeal by special leave is whether ammonia paper and ferro paper can be described as paper other than hand made paper for the purposes of the notification No. ST-3124/X-1012(4)-1965 dated July 1, 1966 issued under the U.P. Sales Tax Act, 1948. 2. The respondent assessee is a dealer in stationery and drawing material, and sells ammonia paper and ferro paper. In assessment proceedings under the U.P. Sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ontention on behalf of the Commissioner of Sales Tax is that the opinion expressed by the High Court is erroneous and that upon a proper view ammonia paper and ferro paper must be regarded as paper other than hand made paper within the meaning of the aforesaid notification of July 1, 1966. 4. Section 3 of the U.P. Sales Tax Act charges sales tax, on goods sold by a dealer at a specified rate, the charge being imposed on every sale in the series of sales through which the commodity may pass, commencing from the manufacturer to the ultimate retail dealer. It imposes a multi-point tax. Section 3 A of the Act, however, provides for the imposition of sales tax on one only of the sales of the commodity in the series of sales, the single poi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nothing but an ordinary rough base paper. This ferro and ammonia paper has got only this specific use of obtaining prints and sketches of site plans and it cannot be used as an ordinary paper because of these special texture and its chemical properties. 6. The paper is used for preparing prints and sketches of site plans. An impression of the print or sketch is made on the paper, and it is then exposed to light for a period of time during which the chemical evaporates resulting in the emergence of the print or sketch of the site plan. Plainly, ammonia paper and ferro paper cannot be regarded as paper in the popular sense of that term. Paper is used for printing or writing or for packing. Ammonia paper and ferro paper are not employed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aper mentioned in sub-clause (vii) of clause (a) of Section 2 of the Essential Commodities Act, 1955 and in Item 13 of Schedule I to the Gujarat Essential Articles Dealer (Regulation) Order, 1971. The learned Judges supported their conclusion by reference to the object and purpose of the Act and the Regulation Order. That case, in our opinion, is distinguishable from the instant case. On the contrary, more to the point is the decision of the Orissa High Court in State of Orissa v. Gestetner Duplicators (P) Ltd. - (1974) 33 S.T.C. 333, where it was held that stencil paper was not paper within the meaning of serial No. 7A of the Schedule to the notification issued by the State Government under the first proviso to sub-section (1) of Section ..... X X X X Extracts X X X X X X X X Extracts X X X X
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