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1997 (12) TMI 569 - SC - VAT and Sales TaxWhether the price of the containers or the packing is charged separately or not? Whether the cardboard cartons cannot be taxed once again when sold along with the beer? Held that:- Appeal dismissed. In view of the clear provisions of section 5(3-D) of the Karnataka Act and the corresponding provisions of section 5(5) of the Kerala Act there is no basis for the argument that if the price of the goods and the price of the containers or packing materials are separately charged, the provisions of the aforesaid two sections will not be applied at all. The law is quite clear that when the goods contained in containers or packed in packing materials are sold the containers and the packing materials will have to be taxed at the same rate at which the goods are liable to be taxed. It will not make any difference if the price payable for the containers or packing materials are shown separately in the bills raised by the seller. Sub-section (5) of section 5 specifically provides that the rate of tax and point of levy applicable to the containers shall be the same as those applicable to the goods sold. Therefore, even if the cartons have already been subjected to tax by virtue of specific provisions of section 5(5) they will be liable to tax at the same point and at the same rate as the goods contained therein.In calculating the turnover of the goods, packing materials will have to be taken into account. The packing materials will be taxed at the same rate and at the same point as the goods contained in the packing material.
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