COMMISSIONER OF SALES-TAX Vs. MAHARASHTRA LITHO WORKS

JUDGEMENT

(1.) This is a reference under section 61 (1) of the Bombay Sales Tax Act, 1959 (hereinafter referred to as "the said Act"). The question referred to us for our consideration is as follows : "Whether on the facts and in the circumstances of the case the Tribunal was justified in law in holding that the butter paper adapted for use as printing material by the respondents is covered by entry 24 of Schedule 'C' to the Bombay Sales Tax Act, 1959 ?"

(2.) The facts giving rise to this reference are as follows : The respondents, who are the assessees, are running a press where they do two types of printing, one being litho printing and the other being transfer printing. The process of transfer printings is as follows : The printing press makes printing of letters on butter paper. These printings are called gold leaf transfers. They are sold to the textile mills who in their turn, by a process of heating transfer these letters on to the cloth. The assessees made purchases of butter paper for this purpose and the question was whether the assessees were entitled to claim a set off as provided under rule 41 of the Bombay Sales Tax Rules; 1959.

(3.) It is common ground that if the butter paper purchased as aforesaid was covered by entry 6 of Schedule C to the said Act, as it then stood, the assessees would not be entitled to a set off as claimed by them whereas if it was covered by entry 24 of the said Schedule C they would be so entitled. For the assessment periods 1-1-1960 to 31-3-1960, 1-4-1960 to 31-3-1961 1-4-1961 to 31-3-1962 and 1-4-1962 to 31-3-1963 it has been held by the Tribunal that the butter paper purchased as aforesaid was covered by entry 24 of the said Schedule C to the said Act and hence the assessees were entitled to a set off. It is this finding which is being disputed before us in this reference, which has been made at the instance of the Department.