UNITED BREWERIES LIMITED Vs. STATE OF ANDHRA PRADESH

JUDGEMENT

(1.) THIS case along with a number of other cases was heard by S. P. Bharucha and Faizan Uddin, JJ. who passed the following order :-

(2.) THE United Breweries (hereinafter referred to as 'UB') supplies at Hyderabad two brands of beer - (1) U.B. Export Lager, and (2) Sun Lager. THE dispute between UB and Andhra Pradesh Sales Tax Authority was as regards the crates and bottles in which the beer was supplied. THE case of UB was that when beer was sold bottles and crates were not sold to the customers. THE sale price of UB Export Lager was Rs. 43.18 and Sun Lager Rs. 43.75 per dozen. THE supplies were made to selling agents who deposited security of Rs. 4.80 for the bottles and Rs. 5.00 for the crates. THEse deposits were returned to the selling agents when the bottles and the crates were returned. This was the method of carrying on of the trade by the assessee and two circular were issued by the assessee to explain the scheme to their customers. It was stated in the two circulars as to how payments for two brands of the beer were to be made. Additionally, it was stated that the "vendees to return bottles and crates and customers are assured of better supply, if the scheme is adhered by the customers; otherwise the company expressed difficulty in supplying the liquor."

(3.) THE case ultimately went up to the Tribunal. THE Tribunal was of the view that there was no bailment of the bottles and the crates and there was no contractual obligation on the part of the customers to return the bottles and the crates. THE scheme, therefore, was not acceptable as genuine.