Judgment

B. P. JEEVAN REDDY

( 1 ) THE question in this batch of appeals is whether the publishers of newspapers are entitled to the benefit of Section 8 (3 (b) read with Section 8 (1 (b) of the central Sales Tax Act, 1956, hereinafter referred to as the Act. If they are so entitled, they can purchase the raw material required by them at the concessional rate of 4%. If not, they will be liable to pay tax 10%. The Madras and Kerala High courts have taken the view that they are entitled to the said benefit while the Karnataka High court has held to the contrary. We may briefly indicate how the question arises.

( 2 ) THE publishers of newspapers require various goods, hereinafter referred to as the raw material, for producing, i. e. , for printing and publishing their newspapers. These publishers are registered as dealers under the Tax Act. They purchase their raw material from other registered dealers. Most of these purchases are inter-State purchases; in the hands of the selling dealers they are inter-State sales exigible to tax.

( 3 ) SECTION 8 prescribes the rate of tax on inter-State sales. Ss. (1 says that "every dealer who in the course of inter-State trade or commerce. . . (b) se