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TMI Blog1979 (10) TMI 195X X X X Extracts X X X X X X X X Extracts X X X X ..... incipal and the rate at which the assessee charged its customers are the same. The same procedure has been followed for a long number of years. From time to time, there has been an increase in the rates of deposits due to extreme shortage of empty bottles. In the circular dated 18th August, 1971, the following passage occurs: "1. Price: United Breweries Export Rs. 22.15 per dozen qts. f.o.r. Bangalore......... 2.. Empty bottles deposit of Rs. 4.80 per dozen and sales tax will be extra...... Empty bottle deposit is refundable against return of bottles at the brewery. The freight on return of empties and breakages will be on your (purchaser's) account." In the copies of the bills issued as against the assessee the price of the liquor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Kerala[1978] 41 S.T.C. 333. In that case, the assessee-company received yarn from Madura Mills in wound round cones. When the cones were passed on to the assessee a debit note was made by the mills and at the time of return of the cones a credit note was made. The notes were with reference to the cost of the cones. The Kerala High Court held that the property in the cones passed on to the assessee when the cones were purchased and that, therefore, the goods were actually taxable. Subsequent to this decision, the Kerala High Court had occasion to examine a similar claim in the assessee's own case in T.R.C. No. 4 of 1977, etc. [Deputy Commissioner of Sales Tax (Law) v. McDowell Co. Ltd.(2)] in a judgment dated 7th April, 1978. In the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ession "as and when" would go to show that there was an expectation on the part of the mills of the return of the containers. However, having regard to the nature of the entries made and the conduct of the parties, apparently, the view that the containers had also been billed for was taken. We are not concerned with such a case. One aspect brought to our notice was that, in the present case, the assessee debited the amount paid for bottles to the purchase account and it was, therefore, contended that there has been payment by the assessee as purchaser of bottles and, therefore, there must be sales thereof. However, the way in which the accounts are maintained is not conclusive and what is necessary is to look into the transactions that to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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