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CTO, A/E, Bhilwara Versus M/s Suzuki Textiles Ltd., Bhilwara

2016 (4) TMI 137 - RAJASTHAN HIGH COURT

Imposition of tax - Packing material used for packing the clothes - Held that:- relying on the decision of co-ordinate Bench of this Court in the case Commercial Taxes Officer, Anti Evasion, Bhilwara Vs. M/s Suzuki Textiles Ltd., Village Gudda, Post Office- Mandal, District Bhilwara, S.B. Civil (Sales Tax) and Assistant Commissioner, Commercial Taxes Department Vs. Teletube Electronic Ltd. [2002 (4) TMI 929 - RAJASTHAN HIGH COURT], the tax not imposable on packing material used for packing the c .....

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eals of the petitioner-Revenue which were dismissed by the learned Tax Board. The dispute in the present matter is about imposition of the tax on the packing material used for packing the clothes. 2. The relevant portion of the impugned order dated 29th July, 2005 is quoted herein below for ready reference:- 6. This section goes to show that the rate of tax on packing material will depend upon the rate of tax on the goods sold. If the tax to be charged is 16% on the goods sold then the tax on th .....

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then no tax shall be payable on the sale or purchase of the container or the packing material in which the goods are sold. It was further held as under:- The underlying idea behind these rules is that packed goods are to be taxed as composite units. Various rates of tax have been fixed by the Act for sale or purchase of various types of goods. If the goods are sold in packages or containers then for purpose of imposition of tax, the turnover of the goods will have been calculated by including t .....

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t cases relating to the imposition of tax on the packing material is covered by the decision of the co-ordinate Bench of this Court in the case Commercial Taxes Officer, Anti Evasion, Bhilwara Vs. M/s Suzuki Textiles Ltd., Village Gudda, Post Office- Mandal, District Bhilwara, S.B. Civil (Sales Tax) Revision Petition No. 288/2006, decided on 19.02.2013 in which, this Court, while following the earlier decision of the coordinate Bench of this Court at Jaipur Bench, Jaipur in the case of Assistant .....

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enue authorities decide as a fact that sale of packing material has taken place independently of the principal material by establishing that the transfer of property in the packing material has taken place for consideration referable to the transfer of property in packing material, no tax can be levied where there is a single transaction for one sale price by splitting up the sale price by splitting different items of expenses which go to make the sale price of the commodity as one single unit. .....

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independent to the sale of the principal commodity. It has to be established as a fact before invoking rates to be applied under last proviso to Section 5(1) of the Act or proviso thereto that there is a sale of the commodity sought to be taxed in accordance with the wellestablished norms and one of such norms in all circumstances is the transfer of property in goods whether the principal or packing material must be for a consideration referred to such commodity alone. The intendment of the part .....

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