Supreme Court Upholds Tax on Printing Materials in Lottery Tickets Case
The Supreme Court has upheld a longstanding trade tax levy on ink and processing materials used in printing lottery tickets, dismissing the appeal by M/s Aristo Printers Pvt Ltd. The court found these materials were transferred during the works contract, making them taxable under the U.P. Trade Tax Act.
- Country:
- India
The Supreme Court on Tuesday upheld the imposition of trade tax on ink and processing materials used by a lottery ticket printing firm, M/s Aristo Printers Pvt Ltd, in a case that has spanned over 25 years.
Justices J B Pardiwala and K V Viswanathan ruled that the materials form part of the goods transferred during the execution of a works contract, as per the U.P. Trade Tax Act of 1948, validating a previous decision by the Allahabad High Court.
This judgment confirms that the materials used in printing are taxable, as they are considered part of the property transferred to clients under the works contract. The ruling concludes a protracted legal battle, emphasizing contractual obligations and taxation under Section 3F.
(With inputs from agencies.)
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