COMMISSIONER OF SALES TAX Vs. AGRAHARI ROPE STORES

JUDGEMENT

(1.) The only question involved in the present revision is as to whether State Legislature is competent or not to impose trade tax on old newspapers.

(2.) The factual scenario is almost undisputed. For the assessment year 1989-90 the Trade Tax Department on the basis of information received levied trade tax on the import of old newspapers. The levy of trade tax has been justified by the department on the basis of Notification No. 5785 dated September 7, 1981. However this order has been set aside by the Tribunal on the short ground that the State Legislature has no legislative competence to impose any such tax on old newspapers.

(3.) To appreciate the controversy it is relevant to quote Notification No. 5785 dated September 7, 1981. Entry No. 33 of the said notification has been relied upon by the learned Standing Counsel, which reads as follows: