TMI Blog2001 (3) TMI 1006X X X X Extracts X X X X X X X X Extracts X X X X ..... dule to the Kerala General Sales Tax Act, 1963, paper (other than news print), card boards and their products was taxed at the point of first sale in the State by a dealer who is liable to tax under section 5. According to the assessee, it is not the first purchaser. It purchased papers and tax was being paid and thereafter, it converted the same into note books and sold them. According to the assessee, the sale of such note books will not attract tax liability. It is not the first sale. But this contention was negatived by the Tribunal holding as follows: "The Supreme Court judgment dated April 27, 1981* dealt with production of note books by using paper completely exempted from tax by the Orissa Sales Tax Act. According to entry No. 136 o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. It is the above question that was considered by the Orissa High Court. The court relied on another decision reported in State of Orissa v. Bondia Art Press (S.J.C. No. 152 of 1973, decided on 29th October, 1975) wherein the Orissa High Court held that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er and directed that the seized stocks of exercise books be confiscated. In appeal, the Sessions Judge set aside the Collector's order on the ground that exercise books did not fall within the item "paper" as envisaged in the Act and the Regulation Order. The High Court took the view that the term "paper" was wide enough to cover an exercise book, which was nothing but a collection of papers, stitched together by a piece of string or pinned with pins of stapler, and quashed the order of the Sessions Judge. It is against that the appellant approached the Supreme Court. The Supreme Court referred to the meaning of "paper" from the various dictionaries. According to the Concise Oxford Dictionary, paper means-"A substance used for writing, prin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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