TMI Blog1991 (3) TMI 358X X X X Extracts X X X X X X X X Extracts X X X X ..... n the course of business for sale of the goods, the assessing authority held the same to be liable to tax. Indeed, the dealer had not in the accounts maintained any separate account for the sale of the gunny bags. 2.. Aggrieved, the assessee went up to the Appellate Assistant Commissioner in appeal. The Appellate Assistant Commissioner referred to rule 6(cc) of the Tamil Nadu General Sales Tax Rules, 1959, and opined that the charges for packing whether or not such amount is specified and charged for by the dealer separately in respect of the goods not liable to tax at the hands of the assessee are exempt from tax and he accordingly set aside the order of assessment in so far as it related to the addition for the packing material, that is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... separately charging for the gunny bags and, therefore, the price of gunny bags could not be added to the taxable turnover of the assessee. The other argument raised on behalf of the assessee by the learned counsel is that since paddy and rice were exempted articles for the purpose of sales tax, the gunny bags which were used as packing material of paddy and rice should also be treated as exempt and the same could not be subjected to sales tax. We have given our consideration to the submissions made at the bar. 4.. The exemption under the Tamil Nadu General Sales Tax Act, 1959, is in respect of sale of paddy and rice. However, when those commodities are packed in gunny bags, the gunny bags cannot be said to lose their physical or commerci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iaperumal Co. [1990] 76 STC 203, a Full Bench of this Court had also an occasion to consider a somewhat similar argument raised in that case. Approving the view taken by the Division Bench of this Court in K. Natarajan and Sons v. State of Tamil Nadu [1977] 39 STC 443, the Full Bench held that the price of the tin container, where the sale of oil had been made in tins, was not deductible as packing charges. Their Lordships of the Full Bench noticed with approval the submission made by the Additional Government Pleader in K. Natarajan and Sons v. State of Tamil Nadu [1977] 39 STC 443 (Mad.), that since the dealer-company purchased oil in sealed tin containers and it sells the same as it is to the customers, no question of packing of oil by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a pure question of fact depending upon the circumstances of each case. Whether packing material was subject to any agreement, express or implied, needs to be determined and would depend upon the nature of the transaction. On the basis of the admission of the assessee and keeping in view the nature of the transaction that what was sold was not merely rice or paddy but the same along with the packing material, that is. gunny bags, the Board of Revenue rightly found that the price of gunny bags was liable to be included in the taxable turnover. The order of the assessing authority was, therefore, rightly restored by the Board of Revenue. 9.. Thus, for what we have noticed above, we find that the order of the Board of Revenue does not call fo ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
