A.N.Gupta, J. - (1.) The applicant is the manufacturer of bitumenised packing paper which is also called waterproof packing paper. The process of manufacturing as described by the Tribunal in its impugned judgment is that between two sheets of craft paper, a layer of bitumen is laid in order to make it waterproof or impervious.
(2.) The matter relates to the assessment years 1980-81 (1st part), 1980-81 (2nd part) and 1981-82. The assessing authority had taxed it at 5 per cent up to 6th September, 1981, under Notification No. 332, dated 15th November, 1971 and for the latter period it had taxed at 6 per cent under the Notification No. 5785, dated 7th September, 1981. The Deputy Commissioner (Executive) in exercise of the powers under Section 10B of the U.P. Sales Tax Act, 1948 (hereinafter referred to as "the Act") held that the bitumenised waterproof paper was not paper but a paper product and, therefore, revised the order passed by the assessing authority taxing its sale as an unclassified item at 8 per cent. The applicant approached the Sales Tax Tribunal but its appeals were dismissed by means of the impugned order dated 22nd June, 1989. It is against this order that the applicant has come up in revision. Before proceeding further it may be mentioned that the applicant does not manufacture craft paper but. it purchases craft paper from its manufacturers or otherwise and after placing a layer of bitumen between two sheets of such craft paper, waterproof packing paper is manufactured by it.
(3.) Section 3 of the Act is the charging section and Section 3A provides the rates of tax empowering the State Government to issue a notification fixing the rate of tax and point at which it is to be levied. In exercise of these powers under Section 3A which is also a part of the charging section, it issued Notification No. ST-II-332/X-1012-1971, dated 15th November, 1971. Its entry No. 68 reads as follows : "Paper of all kinds including handmade paper whether meant for writing, printing, copying, packing or for any other purpose.";