TMI Blog1963 (2) TMI 42X X X X Extracts X X X X X X X X Extracts X X X X ..... sale of confectionery such as chocolate, lollipops, lemondrops etc. In the assessment for the year 1948-49 the assessee claimed an exemption for the turnover representing the sale of confectionery amounting to Rs. 1,50,535-1-6 on the ground that they had obtained exemption certificate regarding the sale of their confectionery from the Government. The learned Sales Tax Officer disallowed the exemption as in his opinion the confectionery was sold in sealed containers and as such the turnover of confectionery was liable to be taxed and he taxed it at the ordinary rate of three pies per rupee and determined Rs. 1,548-10-0 as the sales tax thereon. Being aggrieved against the order of the Sales Tax Officer the assessee went up in appeal. The lea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... notified that section 3 of the Act was not to apply to the sale of certain categories of goods by the dealers described in that notification on certain conditions. Clause (2) of the said notification which is relevant for the purpose of the present case is as follows: "(2). Dealers in cooked food (other than cooked food sold in sealed containers) including sweetmeats and other confectionery on payment of a fee at the rate of four annas per Rs. 100 of the turnover, subject to a maximum of Rs. 500." The case of the assessee before the Sales Tax Authorities and before us in this reference has proceeded on the basis that as cooked food included sweetmeats and confectionery, only such sale of confectionery would fall out of the exemption cla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cardboard box containing lollipops had to be torn off before access could be had to the lollipops in the cardboard box, it would answer the definition of sealed container within the meaning of clause (2). As already noticed above the cellophane wrapping on the cardboard box bore no seal or signet of any kind and in unwrapping that cellophane paper in order to have access to the lollipops inside the cardboard box no operation of breaking any seal or impression was involved. There is no doubt, therefore, that if the word "seal" is given the narrower meaning as contended for by Sri A.K. Kirty, on the facts of the case the lollipops were not sold by the assessee in a sealed container. The short question, therefore, is whether by clause (2) was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y sold in sealed containers", it was clearly intended to take out the confectionery sold in sealed containers by a dealer from the exemption which was conferred generally on the sale of cooked food, confectionery etc. In other words, the dealer who sold confectionery in sealed containers could not take advantage of the exemption. The word "dealer" as defined in clause (c) of section 2 of the Act means any person or association of persons carrying on the business of buying or selling goods in Uttar Pradesh. Therefore, a dealer who carries on the business of selling confectionery in sealed containers is contemplated as falling outside the exemption clause. A dealer who generally sells in the commercial sense confectionery in an open state to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he manufacturer by itself is a sufficient evidence or guarantee of the quality of the contents. The most usual form or method for furnishing such evidence or guarantee of the quality and quantity of the contents is by way of putting its seal by the manufacturer in order to secure the goods in the container in such a manner that to have access to the contents of the container the seal so put has to be destroyed or broken. For if it were not so done neither the retailer nor the purchaser would be sure whether the goods inside the container as to their quality and quantity are the same as represented and have not been otherwise adulterated or mixed up by extraneous elements. It is hardly necessary to mention that a dealer carrying on the busin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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