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2025-TIOL-76-SC-MISC
IN THE SUPREME COURT OF INDIA
CIVIL APPEAL NO. 703 OF 2012
(Arising out of Special Leave Petition (Civil) No. 15476/2011)
WITH
CIVIL APPEAL NO. 705 OF 2012
(Arising out of Special Leave Petition (Civil) No. 15478/2011)
M/s ARISTO PRINTERS PVT LTD
Vs
COMMISSIONER OF TRADE TAX
LUCKNOW, U.P
J B Pardiwala & K V Viswanathan, JJ
Dated: October 07, 2025
Petitioner Rep by: Rohit Singh
Respondent Rep by: Bhakti Vardhan Singh
UP Trade Tax Act - The appellant, engaged in the business of printing lottery tickets, undertake the work of printing on the paper that was supplied to it by the parties - The ink and processing material, including the necessary chemicals used in the process of printing, were procured by the appellant itself - The Trade Tax Officer levied trade tax on the value of ink, processing material and packing material used by the appellant for executing the printing work on the basis of Section 3F of the Uttar Pradesh Trade Tax Act, 1948 - The Appellate Authority deleted the tax assessed on the value of ink and other processing materials - However, the Appellate Authority upheld the levy of tax on the packing materials - On appeal, the Trade Tax Tribunal set aside the levy of tax on the packaging material, and also upheld the order of the Appellate Authority, which had deleted the tax on the value of ink and other processing materials, including chemicals - On revision, the High Court set aside the order of the Tribunal as well as the order passed by the Appellate Authority, so far as they set aside the tax on the value of ink and processing material, i.e., chemical - The High Court allowed the revision applications on the ground that the diluted ink (consisting of the ink and the chemicals) was passed onto the customers and thus the ink and the processing material, i.e., the chemical, could not be considered as consumables.
Held - Entry 54 in List II of the Seventh Schedule to the Constitution of India enables the State Legislature to enact legislation providing for levying and collecting tax in respect of the sale and purchase of goods - Article 286 of the Constitution prohibits the State Legislatures from imposing...