TMI Blog1995 (2) TMI 370X X X X Extracts X X X X X X X X Extracts X X X X ..... 959 ("the Act"), for determination of the correct rate of tax applicable to sales of "surfane packing paper". The Commissioner, by his order dated December 14, 1970, held that surfane packing paper was covered by entry 24(2) of Schedule C to the Act and liable to sales tax at the rate of 5 paise in a rupee. The assessee was collecting sales tax in accordance with the above determination of the Commissioner. Some time in the year 1975, the Sales Tax Officer, on the basis of some order passed by the Commissioner on applications filed by some other parties seeking determination of the very same issue wherein he had held to the contrary, expressed the opinion that surfane packing paper did not fall under entry 24(2) of Schedule C. The assessee thereupon made another application to the Commissioner under section 52(1)(e) of the Act on September 9, 1975, seeking fresh determination of the very same question, whether surfane packing paper was paper falling under entry 24(2) of Schedule C or not. The Commissioner, on reconsideration of the matter, departed from his earlier order and held that surfane packing paper was not "paper" falling under entry 24(2) of Schedule C. This time he held t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... In other cases Five Three Five According to the assessee, surfane packing paper is a kind of paper and hence falls under entry 24(2) of Schedule C. Though the fact that it is used for packing is not disputed by the Revenue, according to it, it is not "paper" in the true sense of the term. The case of the Revenue is that "surfane packing paper" is primarily made from a kind of plastic and hence falls under entry 19A(c) of Schedule E. The determination of the controversy, therefore, basically depends upon interpretation of the expression "paper of all other kinds" appearing in entry 24(2) of Schedule C to the Act. If on such interpretation it can be held to be a kind of paper, it would fall under entry 24(2), otherwise not. 4. Entry 24 of Schedule C, which covers paper, has classified paper in two categories set out in items (1) and (2). Item (1) refers to paper of the varieties or grades specified therein. The rate of tax applicable to the sales or purchases thereof is higher than that applicable to other kinds of paper which fall under item (2). Item (2) which is couched in very wide terms, covers not only "paper of all kinds" other than those specified in item (1), bu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is a clear finding of the Tribunal that the use of this paper is for packing. A sample of the same is also attached to the paper book which shows that it is a transparent paper. It thus meets the description of paper. 7.. The only ground on which according to the Revenue it should not be regarded as paper is that it is not made of materials such as rags, straw, wood, pulp, bamboo, etc., which are normally used in manufacture of paper. We do not find any merit in this contention of the Revenue because, in our opinion, it is not relevant for deciding whether the packing paper under consideration is a kind of paper or not. Moreover, there is tremendous advance of science and technology in the field of paper manufacturing. Paper is now manufactured from materials which were never used in the past for that purpose. Paper, therefore, need not be manufactured out of any particular material. Whatever be the material used in its manufacture, if the product is known in common parlance as paper and is intended to be used for the purposes for which "paper" is ordinarily used, it would be regarded as paper. In the instant case, surfane packing paper is not only known as packing paper but is a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee that 'dryer felts' are used only as absorbents of moisture in the process of manufacture in a paper manufacturing unit. That cannot militate against'dryer felts' falling within the category of'textiles', if otherwise they satisfy the description of 'textiles'." It observed further: "Now, what are'dryer felts'? They are of two kinds, cotton dryer felts and woollen dryer felts. Both are made of yarn, cotton in one case and woollen in the other. Some synthetic yarn is also used. The process employed is that of weaving according to warp and woof pattern.............. We do not think that the word'textiles' has any narrower meaning in common parlance other than the ordinary meaning given in the dictionary, namely, a woven fabric. There may be wide ranging varieties of woven fabric and they may go on multiplying and proliferating with new developments in science and technology and inventions of new methods, materials and techniques, but none the less they would all be textiles." Emphasising the necessity of giving due regard to newly developing methods, materials, techniques and processes for understanding the true meaning of a "textile", the Supreme Court observed: ". ..... X X X X Extracts X X X X X X X X Extracts X X X X
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