The Supreme Court of India, in a significant ruling on the taxation of works contracts, has held that ink and processing materials (chemicals) used in the printing of lottery tickets are subject to trade tax, as their use constitutes a “transfer of property in goods” under Section 3F of the Uttar Pradesh Trade Tax Act, 1948. A bench comprising Justice J.B. Pardiwala and Justice K.V. Viswanathan dismissed the appeals filed by M/s. Aristo Printers Pvt. Ltd., upholding the judgment of the Allahabad High Court and confirming the levy of tax by the assessing authority.

The central legal issue before the court was whether the value of ink and chemicals, which are consumed in the process of printing, can be taxed on the grounds that property in these goods is transferred to the customer during

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