TMI Blog1979 (7) TMI 236X X X X Extracts X X X X X X X X Extracts X X X X ..... per and exercise books. During the period 1970-71, which is relevant for the present purpose, the assessee was working as authorised agent of Titaghur Paper Mills Limited for storage and sale of paper. The Sales Tax Officer, while examining the assessee's accounts, found that the assessee had purchased paper worth Rs. 36,992.40 from its principal free of tax by furnishing declarations. The assessee, however, did not sell the paper qua paper but converted the same into exercise books and sold them as such. The Sales Tax Officer was of the opinion that the assessee had contravened the declarations and as such the purchase turnover was added for determining the taxable turnover in the hands of the assessee. The Assistant Commissioner affirmed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ka v. State of Orissa[1977] 39 S.T.C. 93. Court). There, the question for consideration was whether mill-made cloth when converted into bed sheets, towels or napkins ceased to be mill-made cloth. Mill-made cloth was exempt from taxation. The examination in that case, therefore, was from the point of view of whether bed sheets, towels and napkins continued to be of the specie of millmade cloth or became different commodities by the process of being cut and stitched. This Court held that the conversion did not bring about a change in the specie. The ratio of that decision, therefore, is of no assistance. The other case to which reference has been made during the hearing is of the Allahabad High Court in Laxmi Paper Mart v. State of Uttar Pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to such material, it ceases to be paper as such and in place of paper new commodities intended for specific use appear. The Tribunal was clearly wrong in holding that manufacture by the assessee of paper into letter pads and bill books did not constitute contravention of the declaration so as to attract the proviso." This is a clear authority against the petitioner's stand. Reliance has also been placed by the assessee's counsel on a Bench decision of the Patna High Court in the case of Minerva Printing Works v. State of Bihar[1973] 32 S.T.C. 258., where the question for consideration was whether blank registers, exercise books, letter pads, labels, loose printed forms, envelopes, cards, flat files, etc., were paper and as such exempt f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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