TUSHAR TRADING CO Vs. STATE OF KERALA

JUDGEMENT

(1.) The question for consideration is whether the petitioner is liable to pay sales tax at 10 per cent on. the turnover of Rs. 26,460.19 representing the value of empty gunnies, mats, coir twine etc. used for transporting copra. The petitioner is a dealer in coconuts, pepper, copra etc. and was assessed to sales tax for the year 1963 64 under the Central Sales Tax Act, 1956.

(2.) The assessee raised two contentions; (1) In computing the turnover for assessment Rs. 26,46019. have to be deducted in view of R.9(f)(ii) of the Kerala General Sales Tax Rules, 1963, and (2) even if the said deduction is not allowable the disputed turnover has to be taxed only at 2 per cent at which copra was taxed on the ground that the sale of packing materials is only incidental to the sale of copra. Both these contentions were overruled by the Tribunal. The first contention was not pressed before us.

(3.) The second ground which alone was argued was that the turnover of Rs. 26,460.19 has to be taxed only at 2%. It has been taxed at 10 per cent as according to the Tribunal it represents the sale of packing materials and the declarations in Form C were not furnished in support of the said sales. The reason given for the conclusion of the Tribunal is that in the invoices drawn in favour of the purchasers for the purchase of copra the price of packing materials has been separately shown. The Tribunal observed: