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2018 (5) TMI 1283 - HC - VAT and Sales TaxInter-state sales - exemption from tax - whether "old newspaper" would be covered within the term "newspaper" or not - levy of tax at 10% instead of 4% - Whether in the facts and circumstances of the case, the Tribunal is legally correct in having held that sale of old newspaper would be covered by the Entry 54 of List II and entry 92 of List of the Seventh Schedule to the Constitution of India even when old newspapers were sold as waste paper and not with reference to their news content or for the purpose of reading? Held that: - In Indian Express (P) Ltd. vs. State of Tamilnadu [1986 (4) TMI 321 - SUPREME COURT OF INDIA], the issue before the Hon ble Supreme Court was whether the sale of Old Newspapers is exempt from payment of tax. It was argued that when surplus copies of the news papers were sold, they possessed the character of newspaper and were exempt from sales tax - it was held by the Supreme Court that when newspapers are sold to the reading public, they are sold as medium containing information regarded as news. They are purchased by members of public to acquaint themselves with the current news. Information is news when it is fresh and new. So when newspaper becomes old, it loses its characteristic as newspaper. When unsold surplus copies of newspapers are disposed of by weight, their sale cannot be regarded as the sale of newspapers. However in the case of Sait Rikhaji Furtarnal v. State of Andhra Pradesh [1990 (8) TMI 344 - SUPREME COURT OF INDIA], it was held that, old newspapers would be covered by the word newspapers in entry 54 of list II and entry 92 of list I of the Seventh Schedule to the Constitution of India and it is, therefore, beyond the competence of the State Legislature to impose Sales Tax on the sale of old newspapers. In case of conflict between earlier and later decisions of Supreme Court, each consisting of equal number of Judges, later decision prevails. - Govindanaik G.Kalaghatigi v. West Patent Press Company Ltd and Anr. [1979 (2) TMI 202 - KARNATAKA HIGH COURT] (Five Judge Bench) There are no manifest illegality, warranting reversal of the order of the Tribunal - Tax Case (Revision) is dismissed. - Decided against the revenue.
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