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2014 (9) TMI 503 - HC - VAT and Sales TaxSales tax exemption - production of computer stationery under the Assam Industries (Sales Tax Concessions) Scheme, 1997 - Held that:- It is seen that for production of computer stationery the raw materials used are paper rolls and carbon rolls. In order to qualify any product as computer stationery, the said product must be perforated on both sides/ edges of the paper and must also be foldable. Such perforation must be of certain specifications so that such paper can be fed into the computer printers and if it is a continuous paper, such paper must be horizontally perforated so that the continuous paper can be folded and torn off. Therefore, unless such paper is subjected to such perforation with certain specifications, the same cannot be used as computer stationery. Petitioner was engaged in the manufacturing of computer stationery with carbon. The carbon papers are attached to the plain papers and thereafter perforated with necessary specifications and the end-products are papers with carbon for the use by the computer. The carbon element, which is another raw material for production of the computer stationery becomes an integral part of the product which when properly implanted to the normal paper becomes an identifiable distinct product to be used only for the purpose of computer printing and known in the commercial parlance as computer stationery. While ordinary paper may be also used for computer printing, computer stationery having distinct characters as stated above is used only for computer printing. Activity of the petitioner, involving certain processes with the aid of machines by integrating plain paper with carbon and which is perforated under certain specifications, and known in the common trade parlance as a computer stationery, would qualify as a manufacturing process. The process applied results into transformation of the two commodities of paper and carbon used as raw materials to an integrated and non-separable product assuming an identity of a different article or commodity known as computer stationery in the common trade parlance. Decided in favour of assessee.
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