9911796707
TMI Blog1987 (7) TMI 544X X X X Extracts X X X X X X X X Extracts X X X X ..... was made of the sales of vegetable oil packed in tins made by the assessee. In the bills prepared by the assessee the cost of empty tins used as packing material for the vegetable oil was shown separately. The sales tax charged for vegetable oil was at the rate of 7 per cent, while that for the packing material, namely, tins, was 3 per cent as prescribed for the packing material. The assessing authority also included the amount of freight in the taxable turnover. The assessee appealed to the Deputy Commissioner (Appeals), which was rejected. The assessee then preferred a revision to the Board of Revenue which has been partly allowed by the impugned order dated 21st November, 1978 and the case has been remanded to the assessing authority fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the principles which indicate the situation in which the amount of freight has to be included in the sale price. No further direction with regard to the item of freight is called for. The petitioner's grievance regarding the concessional rate of 3 per cent on the amount representing the value of the empty tins used as packing material for vegetable oil is based essentially on Notification No. F. 5(21) FD(CT)/71-3 dated 27th March, 1971 read along with 5th proviso to sub-section (1) of section 5 of the Act which reads as under: "Provided also that when any goods are sold, packed in any materials, the tax shall be leviable on the sale of such packing materials (when not separately charged for) at the same rate (if any) as is applicabl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... whether there was an agreement to sell packing material along with the products contained therein. If the circumstances of the case indicate even an implied agreement of the sale of the packing material as a different commodity, then its sale is taxable at the rate prescribed for the packing material and not the commodity contained in it. Applying that test it is clear that there was at least an implied agreement to sell the empty tins along with the vegetable oil contained therein and to charge for them separately as has been done in the bills prepared in the present case. Merely because it is in the same bill that the sale transaction of tins is shown separately, this distinction of selling the tins separately does not get obliterated. It ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment is Ramnagar Cane Sugar Co. Ltd., Jaipur v. Commercial Taxes Officer, Circle 'B', Jaipur [1987] 64 STC 96 (Raj). No doubt the facts of the case appear to be similar, but there are significant differences which distinguish the decision. The benefit of the concessional rates under the above notification was not given in that case, since the assessee was not also carrying on the business of selling empty tins and there was no express or implied contract of sale of the packing material as in the present case. It has already been held that there was at least an implied agreement to sell empty tins separately which were used as containers for the vegetable oil and this is how the bills were made out regarding both the sale transactions. Mor ..... X X X X Extracts X X X X X X X X Extracts X X X X
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