The main legal point established in the judgment is the interpretation of specific items under the Kerala General Sales Tax Act and the taxability of duplicating paper and stencil paper as accessories or paper products.

1. The Revenue is the petitioner herein. The respondent is an assessee under the Kerala General Sales Tax Act. We are concerned with the assessment year 1980-81. The controversy is regarding the rate at which the duplicating paper and stencil paper are taxable. The Revenue brought these two items to tax as coming within item No.21 of the 1st Schedule, before its amendment by Act 19 of 1980. The goods were taxed at 15 per cent at the point of first sale in the State by the respondent-dealer. In appeal the Appellate Tribunal held that the goods are not taxable under 1st Schedule, Item No. 21. It was held that both stencil paper and duplicating paper cannot be taxed as accessories to duplicating machines. However, duplicating paper is paper and after amendment it will come under item No. 97 of the Ist Schedule and taxable at 8 per cent. Till 15-9-1980 (date of amendment) duplicating paper was 'paper' and was liable to tax at the general rate at 4 per cent. Even after the amendment, stencil paper cannot be considered as paper nor can it be considered as paper product. So it could be taxed only at 4 per cent, at the general rate. These findings and conclusion reached by the Appellate Tribunal are challenged by the Revenue in this revision.

2. We heard counsel for the Revenue Mr. Nambiar as also counsel for the respondent Mr. Zacharia. The relevant entries, with which we are concerned, are Schedule I, item 21, as it stood before the amendment by Act 19 of 1980 and Schedule I, item 97 after the amendment. The Appellate Tribunal referred to the decision of the Supreme Court in Annapurna Carbon industries Co. v. State of Andhra Pradesh (37 STC 378) for the purpose of informing itself as to the meaning of the word 'accessory' used in item 21 of the 1st Schedule, before the amendment. After adverting to the said decision, it was held that accessory to a thing is an article which is neither an integral part of it nor an item indispensable for its functioning, but yet is attached to it or is used in connection with it adding to its convenience or its effectiveness. In this view of the matter, it was held that though duplicating paper and stencil paper are essential for making a duplicating machine work, they cannot be described as accessories to duplicating machines. In the light of the decision of the Supreme Court in Annapurna Carbon Industries Co. case (37 STC 378), we are satisfied that the Appellate Tribunal was justified in holding that duplicating paper and stencil paper cannot be called as accessories to duplicating machines.

3. The next question is whether stencil paper can be called paper. After the amendment by Act 19 of 1980, paper is covered by item No. 97 of the 1st Schedule. A Bench of the Orissa High Court, in the decision reported in State of Orissa v. Cestetner Duplicators (P) Ltd. (33 STC 333) held that stencil paper is not paper. The Court referred to the decision of the Supreme Court, that of the Allahabad High Court and of this Court, to hold that stencil paper is not'paper'. We concur with the said decision. We hold that stencil paper will not come under the I Schedule, entry 97, even after the amendment by Act 19 of 1980,

4. The further question is whether duplicating paper will come within 1st schedule, item No. 97. It was not disputed that after the amendment by Act 19 of 1980, with effect from 16 9-1980, duplicating paper will come within Ist schedule, item No. 97. We hold that this view of the law is right.

5. Finally we shall advert to the plea of the Revenue that the duplicating paper and stencil paper will be paper products within the meaning of Schedule I, item No. 97 and so they could be taxed at 8 percent. In P. K. Dewer v. State of Kerala (1970 KLT 454) a Bench of this Court had occasion to consider as to what is meant by 'paper products'. It was held that 'paper product' means, an article different from paper and something produced with or out of paper. It was further observed that one of the tes