TMI Blog1985 (1) TMI 279X X X X Extracts X X X X X X X X Extracts X X X X ..... ly. The assessing authority also added 20 per cent as gross profits on the purchases of bottles and tins made by the assessee. 3.. On appeal, the Deputy Commissioner of Commercial Taxes (Appeals), Bangalore City Division, confirmed the assessment and dismissed the assessee's appeal. Further appeal of the assessee before the Tribunal also failed. The Tribunal has upheld the assessment holding the assessee as a first dealer and not entitled to claim exemption from tax since he was not able to produce any evidence to show that the old empty bottles were purchased from local registered dealers on payment of tax and did not produce the declaration as required under rule 26(9)(a) of the Karnataka Sales Tax Rules, 1957. The Tribunal also upheld ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Babu, learned High Court Government Advocate, contended that there is no evidence to prove the fact that the bottles which are containers of various products, have also been sold ultimately to the consumers and as such it cannot be inferred or assumed that the said bottles suffered sales tax. He has placed reliance upon rule 26(9)(a) of the Rules, which provides that every dealer in goods taxable at the point of first sale in the State, shall, where he claims exemption from payment of tax by reason of his not being the first seller, furnish to the assessing authority a declaration in form 32 obtained from the unregistered dealer who sold the goods to him. He contended that under the said rule, it was incumbent upon the assessee to prove tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rnataka Sales Tax Act. 9.. In the light of these principles, the question that arises for determination is whether the turnover of the empty second hand bottles is assessable to sales tax under the K.S.T. Act and whether the assessee has discharged the burden to show that his sale was a second sale. 10.. In our opinion, the facts proved in the case speak for themselves. The very fact that the bottles in question are second hand bottles will suggest that there was an earlier sale of the same bottles liable to tax. It might be as containers or otherwise. There is no presumption that the bottles when used as containers are not the subject-matter of sale. Generally, though not always, when there is a sale of an article, the container and th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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