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Case Law Details

Case Name : Vibha Publications Pvt. Ltd. Vs. Commissioner, Trade Tax, UP. Lucknow [2015 (2) TMI 431 - ALLAHABAD HIGH COURT]
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Vibha Publications Pvt. Ltd. (Appellant) was engaged in job work of printing material. In the printing process, the plates, chemicals and ink (Impugned Goods) were consumed. The Revenue contended that the value of Impugned Goods consumed in printing process is exigible to Sales tax. Further, the purchase of Impugned Goods was taxable pursuant to the Notification No. 711 dated February 27, 1997. While the Appellant contended the use of Impugned Goods is incidental to the printing process. Further, Impugned Goods loses its identity during the course of printing of newspapers and they are not meant to be transferred.

On appeal being filed to the Hon’ble Tribunal, the Hon’ble Tribunal also held that Impugned goods are exigible to Sales tax. Being aggrieved, a revision application was filed before the Hon’ble High Court of Allahabad against the order of the Tribunal dated November 4, 2004 for the Assessment Year 1996-97 (U.P.).

The Hon’ble High Court of Allahabad held that the matter is squarely covered by the decision of the Court in the case of Commissioner, Trade Tax, U.P. Lucknow Vs. M/s. Aristo Printers Pvt. Ltd. Ghaziabad [2010 (12) TMI 1095 – ALLAHABAD HIGH COURT] wherein relying upon the decision of the Hon’ble Apex Court in the case of State of Maharashtra Vs. M/s Sarvodya Printing Press Fine Art Printer [1999 NTN (Vol.15) 619], it was held that printing work is in the nature of Works contract. The Hon’ble High Court further held that undoubtedly, ink is passed on to the customers as is apparent from the ultimate printed material. Thus, the tax assessed by the Assessing Authority on the value of ink and processing material as normal chemical is, therefore, justified.

(Bimal Jain, FCA, FCS, LLB, B.Com (Hons), Mobile: +91 9810604563, Email:

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  1. kd singh says:

    we have print 10000 @ 03.59 answersheets from printers. we want to that is under work contact tax or not.could you tell me.

  2. Vijay Patil says:

    sale tax is tax on sale of goods. as per definition of sale there must be transfer of property in goods to the buyer, in this case goods is “ink” and while printing it is used but it is not meant to transfer the property in goods i.e. Ink, what buyer got is printed material AND NOT the INK.

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