Aristo Printers Pvt. Ltd Vs Commissioner of Trade Tax (Supreme Court of India)
Supreme Court held that since all three conditions required to sustain levy of tax u/s. 3F(1)(b) of the Uttar Pradesh Trade Tax Act, 1948 are fulfilled, tax is leviable on ink and processing material used in printing lottery tickets.
Facts- The appellant-assessee is engaged in the business of printing lottery tickets. It would undertake the work of printing on the paper that was supplied to it by the parties. The ink and processing material, including the necessary chemicals used in the process of printing, were procured by the appellant itself.
The Trade Tax Officer, Ward 5, Ghaziabad vide orders dated 28.10.1999 for AY 1996-1997 and AY 1997-1998 respectively, levied trade tax on the value of ink, processing material and packing material used by the appellant for executing the printing work on the basis of Section 3F of the Uttar Pradesh Trade Tax Act, 1948.
Appellate Authority vide order dated 14.03.2000 accepted the claim of the appellant and accordingly deleted the tax assessed on the value of ink and other processing materials. However, the Appellate Authority upheld the levy of tax on the packing materials. Tribunal vide an order dated 06.08.2002 allowed the appellant’s appeals and set aside the levy of tax on the packaging material.
