SC upholds tax on ink, chemicals used in printing lottery tickets
GST
Dated:- 7-10-2025
PTI
New Delhi, Oct 7 (PTI) The Supreme Court on Tuesday upheld the levy of trade tax on ink and processing materials used by a firm in printing lottery tickets, while deciding an over 25-year-old matter.
A bench comprising Justices J B Pardiwala and K V Viswanathan held that ink and processing materials used in printing lottery tickets form part of the goods transferred in the execution of a works contract under Section 3F of the Uttar Pradesh Trade Tax Act, 1948.
The verdict came on an appeal of Ghaziabad-based printing company, M/s Aristo Printers Pvt Ltd, against a 2010 verdict of the Allahabad High Court which had allowed the revenue
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were not transferred to the clients but only used in the printing process.
The tax on packing material, however, was upheld. Both sides appealed to the Trade Tax Tribunal, Ghaziabad, which ruled in favour of the assessee in 2002, deleting the levy even on packing material and dismissing the RevenueÂ’s appeal.
The Allahabad High Court later overturned the TribunalÂ’s order in 2010, holding that the diluted ink, comprising ink and chemicals, was indeed transferred to the customers as part of the printed tickets.
Upholding the High CourtÂ’s decision, the top court observed that for a tax to be levied under the law, three conditions must be met, including that there must be a works contract and goods must be involved in the execution of the
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