TMI Blog2008 (2) TMI 804X X X X Extracts X X X X X X X X Extracts X X X X ..... ials 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 origi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ythene film at 4%. However, the Government took Ext. P1 clarification issued by the Commissioner as a notification issued under entry 102 of the First Schedule to the K.G.S.T Act and held that Commissioner has no power to declare polythene film as a packing material because, according to the Government, only the Government has the power under the above entry of the Schedule to declare a new material as a packing material. Since the impugned revised assessment issued under Section 19 read with Section 43 of the K.G.S.T Act is based on Government Orders, petitioner has chosen to challenge the same before this Court even after filing statutory appeal before the appellate authority. 2. I heard the learned counsel appearing for the petitioner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 14. Tin containers and tin seals. 15. Rubber bands. 16. Wood wool. 17. Disposable cups, bowls and ice cream cups. 18. Plastic containers. 3. On an application for clarification under Section 59A of the K.G.S.T Act by the Kerala Plastic Manufactures Association, the Commissioner of Commercial Taxes vide Ext.P1 dated 5-4-2001 clarified that polythene film printed with the logo of the purchaser sold by the producer or manufacturer is a packing material falling under entry 102 of the First Schedule to the K.G.S.T Act and the rate of tax is 4%. It is based on this clarification that the assessment was originally completed at the rate of 4% on the turnover of polythene film vide Ext.P2. Even though the Gove ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al Taxes as illegal, is also without jurisdiction. He has referred to the Commissioner s finding in Ext.P1 that notification required from Government side is only on other packing materials which will not come within the meaning of packing case and packing materials referred to in the above entry to the Schedule. The Government Pleader on the other hand pointed out that the Government has, through notification, notified several items like bottles made of glass, plastic etc. rubber band, cellophane tapes, gunny bags etc. as packing materials and according to him, only such materials notified by the Government under 102 Schedule K.G.S.T Act will be entitled to be assessed at the rate of 4% as provided by the Schedule-entry. 4. It is cl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be construed as comprehending not only such things as they signify according to their nature and import, but also these things which the interpretation clause declares that they shall include. 5. Similarly, in the case of E.S.I. Corporation v. High Land Coffee Works [AIR 1992 SC 129], the Supreme Court held that the word including was only illustrative and was intended to enlarge the meaning of the preceding word or words and it is by way of extension and not with restriction. Therefore, going by the principles laid down in these decisions it is clear that the notification by the Government declaring an item as packing case or packing material is required only if such items do not come within the normal meaning of these words. In fact ..... X X X X Extracts X X X X X X X X Extracts X X X X
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