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TMI Blog1995 (2) TMI 377X X X X Extracts X X X X X X X X Extracts X X X X ..... and sold?" 2.. It is obvious from the above question that the controversy involved in this reference is in a narrow compass and the determination of the same depends on the construction of section 15A of the Bombay Sales Tax Act, 1959 ("the Act"). The material facts giving rise to this reference, briefly stated, are as follows: The assessee is a dealer in oil. He purchased oil from registered dealers within the State of Maharashtra as also from other sources. During the period from November 8, 1980 to October 27, 1981, to which this reference relates, the assessee purchased empty tins from unregistered dealers which were used for packing of the oil purchased by it from the registered dealers. The assessee was assessed under the Act for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ales tax was leviable on the value of tins at the rate of four per cent at which the sales and purchases of oil were "generally" subjected to tax under the Act. Aggrieved by the order passed by the Additional Commissioner of Sales Tax on suo motu revision, the assessee appealed to the Maharashtra Sales Tax Tribunal ("the Tribunal"). It was contended by the assessee before the Tribunal that under section 15A of the Act, sales of tins used by the assessee in packing of oil sold by it was not liable to any tax because the rate of tax on the sales of oil effected by the assessee was nil in the instant case. The case of the assessee, in other words, was that the containers cannot be taxed in the hands of the dealer at a rate different from the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... old or purchased are packed in any materials ("packing material"). It is not relevant for the application of this section whether such materials are separately charged or not. But once the goods sold or purchased are packed in any material, by virtue of section 15A, tax shall be leviable on the sales or purchases of such materials at the same rate (if any) as is applicable to the sales or purchases of the goods themselves. The only controversy is in regard to the true meaning of the expression "at the same rate of tax (if any) as is applicable to the sales or purchases, as the case may be, of the goods themselves". According to the assessee, it means the rate of tax, if any, applicable to sale or purchase of the goods by the dealer concerne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Supreme Court. In each case it became necessary to decide whether there was a sale of packing materials, express or implied. Tests were laid down by the Supreme Court to find out whether there was an implied sale of packing materials or the packing materials were used by the seller as a convenient vehicle of transport in which event implied sale of packing material cannot be inferred. It was to set at rest all such controversies and to simplify the task of the assessing officers that in the Bombay Sales Tax Act, section 15A was inserted to do away with the necessity of ascertaining price component of packing material from the value of the contents for subjecting the same to tax separately at the rates applicable to sale or purchase of suc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing materials cannot be subjected to any tax, if no tax is leviable on the goods themselves. Or to put it differently, the rate of tax referred to in unamended section 15A is the rate qua sale of goods by the dealer. It does not and cannot mean the rate generally applicable to sales or purchases of the goods packed in the packing material. Any other interpretation would be contrary to the express language of section 15A and would amount to substituting words "at the same rate of tax (if any) as is applicable to the sales or purchases, as the case may be, of the goods themselves" by the words "at the same rate of tax as is 'generally' applicable to sales or purchases of goods under the Act". This cannot be done because of the well-settled ..... X X X X Extracts X X X X X X X X Extracts X X X X
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