1994 (11) TMI 383 - HC - VAT and Sales Tax

Summary

Issues: Classification of paper pulp trays used for carrying eggs under the A.P. General Sales Tax Act, 1957.

The judgment of the High Court of Andhra Pradesh pertains to a State's revision under section 22(1) of the A.P. General Sales Tax Act, 1957, regarding the classification of "paper pulp trays" used for carrying eggs, known as egg trays. The Tribunal classified the trays under entry 19 of the First Schedule to the Act. The State contended that egg trays should be classified as "general goods" and taxed under section 5(1) of the Act. The State relied on a Supreme Court judgment to argue that the previous Division Bench judgment might not be valid. The respondent-assessee, a dealer in egg trays, was assessed under entry 143 initially, which was later disputed. The Tribunal concluded that the trays fell under entry 19, leading to the State's appeal.

The Court examined entry 19 of the First Schedule, which refers to "Containers other than gunnies and bottles." Citing the Supreme Court's interpretation of the term "container" in a different context, the Court analyzed the broad and narrow senses of the term. The Supreme Court had differentiated between a container as a receptacle that contains articles and a container that encloses and transports items. Applying this analysis, the Court found that entry 19 used "container" in a broader sense, encompassing trays as receptacles containing articles. Therefore, the Court upheld the Tribunal's decision, aligning with the previous Division Bench judgment and dismissing the State's tax revision case without costs.