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2000 (1) TMI 960 - AT - VAT and Sales Tax
Issues:
Levy of tax on the container value in the sale of panjamirtham. Analysis: The tax appeal case revolved around the assessment order by the Joint Commissioner-III of Commercial Taxes, Chennai concerning the levy of tax at 8 per cent on the container value of Rs. 67,293 involved in the sale of panjamirtham for the year 1991-92. The Appellate Assistant Commissioner initially granted relief, considering that the container was purchased separately and had already suffered tax. However, the Joint Commissioner revised this decision, citing precedents and asserting that the panjamirtham was sold in packed tins, thus disallowing any exemption on the packing material value. The appellant's counsel argued that the assessment itself was flawed and that the intention was to sell panjamirtham and containers separately, supporting the initial relief granted. On the other hand, the Government Advocate contended that as per section 3(7) of the Tamil Nadu General Sales Tax Act, the sale of taxable goods in containers should be assessed at the rate applicable to the goods. The Tribunal carefully considered the contentions and records, noting that the relief granted by the Appellate Assistant Commissioner was set aside in the revision order. Referring to the Supreme Court's ruling in Premier Breweries v. State of Kerala, the Tribunal emphasized that the turnover of goods includes packing materials when sold in containers, and both are taxed at the same rate. Therefore, even if the container had previously suffered tax, the sale of panjamirtham in packed containers did not entitle the assessee to claim exemption. Consequently, the Tribunal upheld the order of the Joint Commissioner, dismissing the tax appeal case. In conclusion, the Tribunal's decision was based on the interpretation of the relevant tax laws and legal precedents, emphasizing the taxation principles regarding the sale of goods in containers and the applicability of tax rates to both goods and packing materials sold together.
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