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Shikshak Bandhu Karyalaya vs Commissioner Of Sales Tax

High Court Of Judicature at Allahabad|17 April, 1980

JUDGMENT / ORDER

JUDGMENT R.M. Sahai, J.
1. M/s. Shikshak Bandhu Karyalaya runs an Examination Board for conducting terminal and annual examination of classes VI and VIII of various schools. In 1972-73 it set papers for those examinations, printed them in the press and supplied it to the schools who were inclined to order for the same. It was held by assessing authority that supply of such paper was sale and the assessee was a dealer liable to pay tax on it. In revision a number of contentions were raised but they were rejected. The learned counsel for assessee has reiterated all those submissions which were raised before revising authority and has submitted that assessee is not liable to pay any tax on sale of the examination papers as the work done by assessee was in nature of works contract. It was also alleged that the papers sold by assessee were in fact brochures or book-lets and they being exempt from payment of tax the revising authority committed an error in levying tax on turnover of supply of papers. In Agra University Press Paliwal Park v. Commissioner of Sales Tax (printed at page 317 infra), 1979 UPTC 1270 a question arose whether Madhyamic Shishu Mandal, Madhya Pradesh, Bhopal carrying on business of printing press was a dealer in respect of supply of examination papers, mark sheets, certificate, etc. It was held that the nature of work carried on by assessee was such that it involved not only printing of examination papers but selling them in envelopes and cartons and maintaining strict secrecy. The contract therefore was for supply of papers and for labour and the contract being composite the authorities were not justified in levying tax on it. The revising authority found that assessee prepared the examination paper after holding a meeting of Headmasters of various institutions for moderating it and thereafter supplied it at the rate fixed by the assessee to various schools who desired to participate in prepared schemes of holding examination. The charges made by assessee were not only for printing the papers but they also included the moderation of papers, the holding of meetings of Headmasters and the maintenance of secrecy to ensure fairness during examination. The charges made from various schools could not be considered to be charges for printing papers only. It obviously included the expertise of assessee for preparing those papers. This could not be separated from the charge made for printing the papers. As the entire contract was indivisible the case of assessee was fully covered by principle laid down by this Court in Agra University Press Paliwal Park v. Commissioner of Sales Tax (printed at page 317 infra) 1979 UPTC 1270.
2. In the result this revision succeeds and is allowed. The order passed by Additional Judge (Revisions) is set aside. The assessee shall be entitled to its costs which is assessed at Rs. 300.
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Title

Shikshak Bandhu Karyalaya vs Commissioner Of Sales Tax

Court

High Court Of Judicature at Allahabad

JudgmentDate
17 April, 1980
Judges
  • R Sahai