TMI Blog2010 (12) TMI 1095X X X X Extracts X X X X X X X X Extracts X X X X ..... tax on the value of goods involved in execution of works contract. It was not the case of the assessee at any stage that the chemical (processing material) was consumable and evaporates in the process of printing and is not passed on to the customers. Therefore, both the ink and chemical used in the printing are passed on to the customers. It may be mentioned here that the assessee had also purchased and used consumable but the same has not been taxed. It may be mentioned here that the decision in the case of R.M.D.C. Press Pvt. Ltd. [1998 (9) TMI 635 - BOMBAY HIGH COURT] relied upon by the Tribunal is no longer a good law in view of the decision of the apex court in the case of Associated Cement Companies Ltd. v. Commissioner of Custom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y Commissioner (Appeals), IInd, Trade Tax, Ghaziabad. It was contended by the assessee that the ink, chemicals and other processing materials have not been passed on to the parties concerned and, therefore, the value of such goods could not be liable to tax under section 3F of the Act. The appellate authority has accepted the claim of the assessee and deleted the tax assessed on the value of ink and processing materials including chemicals. He, however, upheld the levy of tax on the packing materials. Being aggrieved by the order of the first appellate authority, the Commissioner of Trade Tax as well as the assessee filed appeals before the Tribunal. The Tribunal, by the impugned order, allowed the appeal of the assessee and dismissed th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd both ink and chemical passed on to the customers as they are obviously visible on a plain paper. In support of the contention, he relied upon two Division Bench decisions of the Bombay High Court, namely, Commissioner of Sales Tax v. Matushree Textile Limited reported in [2003] 132 STC 539 (Bom); [2004] 25 NTN 923 and Commissioner of Sales Tax, Mumbai v. Hari and Company reported in [2006] 148 STC 92 (Bom); [2006] 31 NTN 398 (Bom). In the case of Commissioner of Sales Tax, Mumbai v. Hari and Company [2006] 148 STC 92 (Bom); [2006] 31 NTN 398, the Bombay High Court held that the case of R.M.D.C. Press Pvt. Ltd. [1999] 112 STC 307 (Bom); [1999] 14 NTN 132, has been held per incurium in view of the decision of the Full Bench of the Bomba ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case of State of Maharashtra v. Sarvodaya Printing Press Fine Art Printer reported in [1999] 114 STC 242 (SC); [1999] 15 NTN 619. The question for consideration is whether in the printing of lottery tickets, ink and processing materials, namely, chemicals, etc., are passed on to the customers. Undoubtedly, ink passed on to the customers as it is apparent on the printing paper. The inks are diluted in chemicals (processing material) and such ink in the diluted forms are being used in the printing, therefore, both ink and chemical (processing material) are passed on to the customers. It was not the case of the assessee at any stage that the chemical (processing material) was consumable and evaporates in the process of printing and is not pass ..... X X X X Extracts X X X X X X X X Extracts X X X X
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