RAJALAKSHMI PRINTERS Vs. STATE OF TAMIL NADU

JUDGEMENT

(1.) THE appeal is filed by the assessee against the order of the Joint Commissioner-III (Suo Motu revision) of Commercial Taxes, Chennai-5 in reference No.N2/83342/96 SMR No.670/97 dated 19.04.1999.

(2.) THE appellant herein is doing the business of printing work on specific orders placed by various customers. It secured job work orders from Indian Bank for printing of current account challans, visiting cards, daily summary, loose printed books, O.B.C. pads etc. Similarly it entertained job work from M/s Rajanarayanan Textiles Limited, Southern Textiles Limited, Card Well Spinning Mills Private Limited for printing of maintenance books, invoice books, letter pads, payment vouchers and dividend warrants etc. For the purpose of printing, for the assessment year 1991-1992, the appellant purchased raw materials from outside and utilised the same for printing the above items in order to supply its customers. Hence, the appellant claimed that it is only a works contract and not a sale. That was rejected by the assessing officer. However, on appeal to the Appellate Assistant Commissioner, the said finding was reversed and consequently it was held that the job work undertaken by the appellant for printing the above items amounted to "works contract" and not "sale of goods" and therefore, the appellant would be entitled to the benefit of tax exemption. This order was suo motu revised in terms of Section 34 of the Tamil Nadu General Sales Tax Act by the Joint Commissioner, who confirmed the order of assessing officer. Hence, the present appeal.

(3.) MR.Haja Naziruddin, learned Special Government Pleader, on the other hand, would submit that the entry as to the printed materials came into force even in the year 1990 and in terms of Article 29-A of the Constitution of India, even printed materials are liable to be taxed and they cannot be treated as works contract. Hence, the order of the Joint Commissioner requires no interference.