STATE OF UTTAR PRADESH vs M/S. KORES (INDIA) LTD.

The Supreme Court upheld the High Court's decision that carbon paper is not classified as 'paper' under Section 3-A of the U.P. Sales Tax Act, 1948, and thus should be taxed at the lower rate of 2% for unclassified goods. The Court established that terms not defined in legislation must be interpreted in their popular and commercial sense, and determined that carbon paper's function does not align with traditional uses of paper. Additionally, the Court ruled that ribbon is an accessory to a typewriter and not a part of it, affirming a tax rate of 6% rather than 10%. The appeal was dismissed, maintaining the High Court's ruling.