R. S. KEJRIWAL, J. - (1.) THIS revision has been directed against the order dated May 12, 1986, passed by the Rajasthan Sales Tax Tribunal, Ajmer, in Sales Tax Appeal No. 140/78 by which the said Tribunal, set aside the order of the Deputy Commissioner (Appeals), Commercial Taxes, Jaipur, dated June 30, 1977.
(2.) THE brief relevant facts of the case are that the petitioner deals in glassine paper and greaseproof paper. THE Commercial Taxes Officer while assessing the petitioner in the years 1972-73 and 1973-74, imposed tax at the rate of 7 per cent on the glassine paper and greaseproof paper. THE petitioner filed an appeal which was allowed by the Deputy Commissioner (Appeals), Commercial Taxes Office, Jaipur, vide order dated June 30, 1977 and it was held that the glassine paper and greaseproof paper are used for packing and as such it is a packing material and the assessee is liable to pay tax at the concessional rate of 3 per pent. Against this order, the department filed a second appeal before the Sales Tax Tribunal, which was allowed by the said Tribunal vide order dated May 12, 1986. THE Tribunal though found that the glassine paper and greaseproof paper are ordinarily used for packing purposes but as these two papers were included under the concessional rate vide Government Notification dated March 23, 1983, and as such the petitioner cannot get any benefit of this notification and is liable to pay tax at the rate of 7 per cent. Against this order of the Tribunal, the assessee has come in revision. I have heard learned counsel for the parties. Mr. Mathur, counsel for the assessee argued that prior to the notification dated March 23, 1983, the Government issued Notification No. F. 5 (21)FD (CT)/71-3, dated March 27, 1971, which reads as below : " S. O. 248.- In exercise of the powers conferred by section 5 of the Rajasthan Sales Tax Act, 1954, (Rajasthan Act 29 of 1954) the State Government hereby notifies that with immediate effect the rate of tax payable by a dealer in respect of the goods specified in column number 2 of the list annexed hereto shall be as shown against each in column number 3 of the said list. LISt ------------------------------------------------------------------- S. No. Description of goods Rate of tax 1 2 3 -------------------------------------------------------------------- 1 Packing material, that is to say, - . . . . . . . . . . . . . . . . . . . . . . (iii) Brown paper and other paper adapted for use in packing goods. 3%. " -------------------------------------------------------------------- Mr. Mathur argued that the glassine paper and greaseproof paper, which the petitioner sold are mainly used for packing purposes and as such these items are covered under the definition of "packing material" and as such the petitioner is liable to pay tax only at the rate of 3 per cent as provided under the aforesaid notification. On the other hand, Mr. Bapna argued that glassine paper and greaseproof paper cannot be included in "packing material". His argument is that the packing material is only brown paper or any other paper of similar colour and not the glassine paper and greaseproof paper. In my view, all types of papers, which are used for packing purposes are covered under the definition of "packing material". The Rajasthan Sales Tax Tribunal, in its order found that the glassine paper and greaseproof paper are used ordinarily for packing purposes. In view of this, the glassine paper and greaseproof paper are included in packing material and should be taxed at concessional rate of 3 per cent. The Sales Tax Tribunal did not consider this aspect of the case. It has also not taken into consideration the order passed by the Deputy Commissioner (Appeals), Commercial Taxes Office, Jaipur, in its true sense and reversed the same in arbitrary way. Consequently, I allow the revision, set aside the order passed by the Rajasthan Sales Tax Tribunal and confirm the order of the Deputy Commissioner (Appeals), Commercial Taxes, Jaipur, and hold that the glassine paper and grease-proof paper are packing material and are liable to be taxed at concessional rate of 3 per cent. Both the parties shall bear their own costs. Petition allowed. . ;