STATE OF GUJARAT Vs. DIPAK LALBHAI AND CO

JUDGEMENT

(1.) THE question referred to this Court by the Gujarat Sales Tax Tribunal, Ahmedabad, under section 69 of the Gujarat Sales Tax Act, 1969, hereinafter referred to as "the Act" is the following : " Whether, on the facts and in the circumstances of this case, the Tribunal was right in law in holding that the opponent's disputed sale of 'white printed wrappers' was not sale covered by the residuary entry 13 of Schedule III to the Gujarat Sales Tax Act, 1969, but was covered by the expression 'paper, including newsprint and straw boards and card boards but excluding paper specified in entry 12 and entry 31a in this Schedule', as used in entry 31 of Schedule II, Part A to the Gujarat Sales Tax Act, 1969 ?"

(2.) THE factual background in which this reference has arisen is the following : THE opponent M/s. Dipak Lalbhai and Co. manufacturing printed wrappers sold white printed wrappers to Calico Mills as per invoice dated May 12, 1982, and requested the Deputy Commissioner of Sales Tax under section 62 of the Act, to determine the rate of tax payable on such sale. It was urged that the printed wrapper which was sold for packing of cotton cloth was nothing but a kind of paper falling under entry 31 of Schedule II, Part A to the Act, and that they were not excluded as per entry 12.

(3.) THE relevant entries in Schedule II, Part A of the Act are the following : " 31. Paper, including newsprint and straw boards and card boards but excluding paper specified in entries 12 and 31a in this Schedule. 12. THE following articles, that is to say - (i) and (ii ). . . . . . . . . ; (iii) brown paper, craft paper, butter paper and cellophane paper; (iiia ). . . . . . . . . . . . . . (iv) to (viii ). . . . . . . ; (ix) Paper labels and such other packing materials as the State Government may, by a notification in the Official Gazette, specify for the purpose of this entry. 31a. Art paper, suncoat, art card, art board, ivory card, chrome coated paper, cheque paper, imitation art paper, bible paper and silver cote art paper. "