- (1.) This revision petition under Section 86 of the Rajasthan Sales Tax Act, 1994 is directed against the order dt.19/04/1999 passed by the Rajasthan Tax Board, Ajmer and it relates to assessment year 1992-93.
(2.) The brief facts are that the respondent-assessee is doing business of Photography and printing/developing photographs out of negative on paper and during the course of business, has been using chemical as well as photographic paper. Not only the assessee is doing its own printing but also is taking work on contract basis.
(3.) During the course of assessment proceedings, the Assessing Officer (for short, 'AO') noticed that the assessee purchased photographic papers from various persons within the State and also purchased chemical from M/s. Jindal Photo Film Ltd. New Delhi and that entire photographic papers as well as the chemical was after paying due sales/purchase tax. It was the contention of the assessee that the entire chemical so also the photographic paper was used in the business and thus there was no occasion for any tax to be levied on the assessee of the chemical having used/remained in stock at the close of the year, as well as paper cuttings of the corners which came out while cutting the photograph in various sizes. The AO was of the view that in so far as chemical is concerned, it did not remain in stock or was destroyed on account of various process but he held that chemical was used while preparing photographs and thus in effect was sale to consumer though in a different form and therefore, was exigible to tax under the R.S.T. Act. In so far as the cutting of papers is concerned, the AO was of the view that the assessee sold such cutting/wastage in the market to the extent of Rs. 97,660/- which was certainly a sale, on which no sales tax was paid and thus was liable to tax. The AO was also of the view that the assessee directly credited the receipt of Rs. 97,660/- in the profit & loss account thereby hiding the sale consideration when it ought to have been shown in the trading account and not in the profit and loss account and thus on the above facts on both the issues, the AO levied tax @ 8% on chemical and @ 10% on wastage/recovery (cuttings) of paper.;