SUPREME COURT OF INDIA

Before:- S.P. Bharucha and V.N. Khare, JJ.

Civil Appeal No. 3812 of 1993. D/d. 21.4.1998.

Commissioner of Sales Tax - Appellant

Versus

Indian Express Newspapers Pvt. Ltd. - Respondent

Central Sales Tax Act, 1956, Section 2 - Intention to carry on business - Sale of discarded newsprint - Appeal is pressed only in regard to waste newsprint obtained due to damage caused in transit or due to newsprint getting torn or spoilt in process of printing - Held, there was no intention to carry on business in the discarded newsprint when the newsprint was acquired nor was such newsprint a by-product or a subsidiary product that arose in the course of the process of printing and publishing newspapers which was the principal activity of the respondent.

[Para 1]

Cases Referred :-

State of Gujarat v. Raipur Manufacturing Company Ltd., (1967) 19 STC 1.

JUDGMENT

We have heard learned counsel for the appellant and perused the judgment and order under challenge. The appeal is pressed only in regard to waste newsprint obtained due to damage caused in transit or due to newsprint getting torn or spoilt in the process of printing. The High Court relying upon the judgment of this Court in State of Gujarat v. Raipur Manufacturing Company Ltd., (1967) 19 STC 1 found that there was no intention to carry on business in the discarded newsprint when the newsprint was acquired nor was such newsprint a by-product or a subsidiary product that arose in the course of the process of printing and publishing newspapers which was the principal activity of the respondent. We are in agreement with the view taken by the High Court and dismiss the appeal.

No order as to costs.

Appeal dismissed.