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February 2015

M/S. Cheema Paper Ltd. vs. Commissioner Trade Tax, (2012) 55 VST 473

By C. B. Thakar Advocate; G. G. Goya, Janak Vaghani Chartered Accountants
Reading Time 2 mins
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Entry Tax- Rate of Tax- Duplex Board- Ordinarily Used As Packing Material-Made out of Paper- Not Covered by Entry “Paper of All Kinds”, section 4 of The Uttar Pradesh Tax on Entry of Goods into Local Areas Act, 2007

Facts
The dealer company engaged in the manufacture of craft paper and duplex board. The Commercial Tax Tribunal confirmed levy of entry tax on duplex board holding it to be covered by entry relating to “paper of all kind”. The company filed revision petition before the Allahabad High Court against the impugned order of the Commercial Tax Tribunal.

Held
The definition of paper is of wide import which may include anything which is macerated in to pulp, dried and pressed and is used for writing, printing, drawing, decorating, covering wall or for packing purpose. But board whether card board or duplex board are different meant for packing purpose only and not for use as paper, as is understood in common parlance. The duplex board which undoubtedly is a product of paper and is used as packing material would not be paper covered by the entry of “paper of all kind” as contained in notification and liable for entry tax. Accordingly the court allowed the revision petition.

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