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2008 (7) TMI 868 - HC - VAT and Sales TaxWhether "craft paper" falls under entry 94(i) or 94(ii) of the First Schedule to the Kerala General Sales Tax Act, 1963 and the rate of tax payable thereon? Held that:- The test laid down by the Appellate Tribunal in understanding the meaning of the word "craft paper" with reference to purchaser of the commodity is not a correct test. In our view, the correct test would be to apply common parlance test, and if that test is applied, in our considered view, the craft paper produced and sold by the assessee would not fit into any of the items enumerated in sub-entry (ii) of item 94 of the First Schedule to the KGST Act. Therefore, keeping in view the wider definition that is provided by the apex court in Khatema Fibres Ltd.'s case [2000 (12) TMI 796 - SUPREME COURT OF INDIA], while explaining the meaning of the expression "paper", thus hold, in the facts and circumstances of this case, that, "craft paper" would fit into the description of paper and falls under sub-entry (i) of item 94 of the First Schedule to the KGST Act, taxable only at four per cent. Issue is answered in favour of the assessee and against the Revenue.
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