TMI Blog2001 (9) TMI 1101X X X X Extracts X X X X X X X X Extracts X X X X ..... price, cost or value of such containers or packing materials, and the packing charges, whether such price, cost or value or packing charges, are charged separately or not, and tax shall be levied thereon at the rate applicable to the goods contained or packed as if such containers or packing materials were the parts of the goods sold or purchased." 2.. This provision thus deems the container to be part of the contents for the purpose of determination of the total turnover and provides for the levy of tax on the whole of such turnover at the rate at which the contents are to be subjected to tax. 3.. The Supreme Court in the case of Premier Breweries v. State of Kerala [1998] 108 STC 598, at page 608, held in relation to an identical prov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... upheld that demand, the correctness of the Tribunal's decision is under challenge before us. 5.. Mr. C. Natarajan, learned Senior Counsel appearing for the assessee contended that section 7-A, as held by the Supreme Court in the case of State of Tamil Nadu v. M.K. Kandaswami [1975] 36 STC 191, was itself a charging section; that it creates a liability against a dealer on his purchase turnover with regard to goods the sale or purchase of which though generally liable to tax under the Act, have not due to circumstances of particular sale, suffered tax under section 3, 4 or 5 and which after the purchase have been dealt with by him in any of the modes indicated in clauses (a), (b) and (c) of section 7-A(1). Learned counsel submitted that if ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which the purchase was made. After the amendment to section 7-A(1)(a) recovery of purchase tax is permissible even in cases where the goods which had not suffered tax, at the time of purchase are used by the dealer and are subsequently disposed of by the dealer in circumstances where the value of the turnover relating to those goods is also subject to tax by deeming the same as forming part of the turnover of other taxable goods. 8.. It is no doubt true that the turnover of the bottles is, by reason of section 3(7), deemed to be part of the turnover of the assessee relating to the I.V. fluids and by reason of the inclusion of such turnover of the bottles in that turnover, the turnover relating to these bottles is also subjected to tax. Su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sary to make it marketable. The bottles were clearly goods which were used in or for the manufacture of the fluids. 11.. The assessee by reason of this demand for purchase tax has not suffered any additional burden as any other manufacturer of I.V. fluids who sells the fluids in bottles by purchasing bottles from another registered dealer on which sales tax was paid, would also still be required to include the turnover of those bottles in the turnover of the I.V. fluids. Section 7-A, as submitted by the learned counsel, was intended to plug loss of revenue. We were initially troubled when the facts of the case were presented before us as though the assessee was being burdened with tax twice over. A closure examination of the case, however ..... X X X X Extracts X X X X X X X X Extracts X X X X
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