Ramachandran Nair, J.

1. The short question raised in the revision filed by the assessee is whether the paper imported by them and sold under the name "Euro Craft Waste Paper" falls under Entry 102 of the First Schedule to the KGST Act taxable at 4% or whether the item falls under Entry 106 of the same Schedule taxable at 8%. We have heard counsel for the petitioner and Government Pleader for the respondent.

2. The product sample is produced before us by counsel for the petitioner as well as by the Government Pleader. It is seen that the paper originally produced is craft paper capable of absorbing ink, moisture etc. The petitioner's case is that the paper imported was already used for the main purpose for which it is produced, that is, to remove the excess ink from currency while printing, and thereafter it is waste paper which can be used for packing of goods. The claim of the petitioner is that the item sold is used only for packing purposes and since the item is otherwise waste paper, it is taxable at 4%.

On the other hand, contention of the Government Pleader is that mere use of the paper before import for removing excess ink from printed currency will not change