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2008 (2) TMI 804 - HC - Indian LawsPacking material/packing case - Polythene sheets - sales tax assessment - Held that:- Commissioner rightly interpreted entry 102 vide Ext.P1 declaring the polythene film sold by the petitioner as packing material. The statement by the Government in their order that polythene film is not packing case is correct but mistake happened in their order because they have not considered whether polythene film is “packing material” which it is and is therefore covered by the entry 102. Packing cases and Packing bags are made to pack items of specified volume shape or size. However, packing materials are purchased by the producers of goods, to cut or shape it and use it as packing materials depending on the nature of the packing required. In this case, it is conceded that the purchasers of polythene films from the petitioner are purchasing and using the item to make polythene covers to pack goods like milk, oil, etc. So long as the item sold is used for packing goods, it is packing material, irrespective of the fact whether the petitioner has sold it in rolls or sheets and the purchaser in the course of packing in the automatic packing machine only made it into covers and packed the goods. Following the above findings, quash Ext. P5 to the extent of assessment of polythene sheets at the rate in excess of 4% and restore the original assessment. The writ petition is allowed as above.
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