TMI Blog1957 (2) TMI 53X X X X Extracts X X X X X X X X Extracts X X X X ..... ired by them. They merely explained to the printer exactly the goods they desired and the printer furnished the goods at a fixed price. For the year 1952-53, the total turnover of the assessee, as shown in his returns, was Rs. 24,529-10-6. He claimed before the assessing authority that his taxable turnover was nil as the transactions of sales of paper were distinct and separate from the printing work done by him and the charges recovered for that work, and that he had from time to time issued separate cash and credit memos for the sale of the paper used by him and the printing charges. The assessing authority took the view that the cash and credit memos issued by the assessee for the paper were merely paper transactions and that there was n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... upplied by a dealer is a resale of locally purchased goods and exempted under the Sales Tax Act? (5) Whether papers and other materials purchased locally on which sales tax has been paid and used by the printing press in the production of printed materials become liable to tax again on sale after printing has been made on them and a different article is produced from such locally purchased materials?" 3. Under section 3(1)(b) every manufacturer whose turnover exceeds Rs. 5,000 is liable to pay tax under the Act on his taxable turnover in respect of the sales or supplies of goods effected in Madhya Bharat from the 1st day of May, 1950. Section 2(k) defines "manufacturer" as a dealer who from materials produces goods by manual or animal lab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e entered into two independent contracts with his customers, one for the purchase of paper and the other for printing, the assessee was not liable to pay any sales tax on the printing work done by him. Learned counsel placed reliance on State of Madras v. S. Vijayaraghavan [1955] 6 S.T.C. 237. and D. Ramaswami v. State of Madras[1954] 5 S.T.C. 250; A.I.R. 1954 Mad. 980. 5.. I am unable to accede to this contention of the learned counsel. Having regard to the definition of "goods" and of "manufacturer" given in the Act, it cannot be denied that the stationery sold by the assessee to his customers is goods and that when the assessee brings into existence printed stationery to the order of individual customer, he produces a commercial commod ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ks contract" given in the Madras General Sales Tax Act, 1939. The order Madras case, D. Ramaswami v. State of Madras[1954] 5 S.T.C. 250; A.I.R. 1954 Mad. 980. , is also not of much assistance to the assessee for that was a case where there were separate contracts for the sales of paper and the printing work. In that case, it was, on the other hand, recognised that if the transaction of the sale of paper and printing the paper is one transaction, the printer who sold the printed stationery to his customers would be liable to sales tax. The question whether, when a printer accepts orders from his customers for job work such as receipt books, registers, forms, letter-heads, etc. and prints them in accordance with the requirements of his cu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng charges and that this indicated the existence of two distinct contracts, one for the sale of paper and the other for printing work, it is sufficient to say that the taxing authorities have regarded the issue of such memos as mere paper transactions. The issue of such memos by itself is of very little value when there is no evidence to show that the customer in fact first purchased paper from the assessee and that when the property in the paper passed to him, a contract for the printing work was entered into between the customer and the assessee. The assessee made no attempt before the taxing authorities to prove by the evidence aliunde that the customers in fact entered into two transactions with him, one for the purchase of paper, and t ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
