TMI Blog1989 (3) TMI 368X X X X Extracts X X X X X X X X Extracts X X X X ..... , 1959. In the two references the assessee V.V. Vanniaperumal and Co., is a dealer in gingerly oil and oil-cake and purchases oil, as seen from the records, in barrels and in various sizes of polythene cases and also in 16 kg. sealed tins. We are now concerned with the oil purchased in tins. The company in turn sells the said 16 kg. tins to its customers but it charges in the bill separate price for the oil contents and separate price for the tin container. 2.. The assessing authority taxed on the total turnover rejecting the assessee's plea that the price for the tins shall be taken as packing charges as it is provided under rule 6(cc)(i) of the Tamil Nadu General Sales Tax Rules, 1959. But on appeal the Sales Tax Appellate Tribunal acce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to a Full Bench. 5.. Rule 6(cc)(i) of the Tamil Nadu General Sales Tax Rules, 1959, is this: "6. The tax or taxes under sections 3, 4 or 5 shall be levied on the taxable turnover of the dealer. In determining the taxable turnover, the amounts specified in the following clauses shall, subject to the conditions specified therein, be deducted from the total turnover of a dealer: (a) ..................... (cc) all amounts falling under the head, charges for packing, that is to say, cost of packing materials and cost of labour, (i) when charged for by the dealer separately without including such amounts in the price of the goods sold, in respect of the goods liable to tax at the hands of the assessee; ..........." The rule appears to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ductible. May be the seller has separately charged for the oil content and separately charged for the tin container. But this is immaterial. He may do so for his own convenience with a view to claim deduction as packing charges for a part of the sale price. We have to only see, whatever the seller does, what is the goods sold and what is the price of it. Here it may be relevant to note the contents of explanation (2)(ii) to section 2(r) of the Act. It reads: "the amount for which goods are sold shall include any sums charged for anything done by the dealer in respect of the goods sold at the time of, or before the delivery thereof;" In Commissioner of Sales Tax, U.P. v. Rai Bharat Das Bros. [1988] 71 STC 277 (SC); AIR 1989 SC 315, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ate order, directions or specifications to the purchaser, could not form part of the sale price of the gunny bags. This was done in order to putting them in deliverable state and incidental to the same." Though section 2(h) of the Central Sales Tax Act, 1956, is not similar to rule 6(cc)(i) of the Tamil Nadu General Sales Tax Rules, from what the Supreme Court has stated, it could be seen that the intention of the legislature when it enacted rule 6(cc)(i) could not be that when oil is sold in sealed tins the oil content alone is liable to tax. The Karnataka High Court* had an occasion to interpret a similar provision with reference to freight and handling charges, viz., rule 6(4)(f) and (ff) of the Karnataka Sales Tax Rules, 1957, and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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