HIMALAYA CHATNI BHANDAR Vs. COMMISSIONER OF SALES TAX

JUDGEMENT

(1.) THE order in this case will also govern the disposal of Miscellaneous Civil Cases Nos. 293, 294 and 295, all of 1985, between the same parties.

(2.) BY these references under Section 44 (1) of the M. P. General Sales Tax Act, 1968 (hereinafter referred to as "the Act"), the Board of Revenue has referred the following question of law to this Court for its opinion:

(3.) THE material facts giving rise to these references, briefly, are as follows: The assessee is engaged in the business of manufacture of chatnis, condiments, pickles, etc. The assessee was assessed to tax under the Act for the period 1st April, 1977 to 31st March, 1978; 1st April 1978 to 31st March, 1979; 1st April, 1979 to 31st March, 1980 and 1st April, 1980 to 31st December, 1980. The assessee had purchased tax-paid packing material from registered dealers after payment of full tax and thereafter sold the goods duly packed in the packing material so purchased. The assessee claimed deduction from its turnover under Section 2 (r) (ii) of the Act. The assessing authority rejected that claim. On appeal, the order passed by the assessing authority was maintained. On further appeal, the Board of Revenue held that the packing materials when sold with the goods, had lost their own existence and became part and parcel of the goods sold. In this view of the matter, the Board held that even if the packing material was purchased after paying full tax, deduction under Section 2 (r) (ii) of the Act could not be allowed from the turnover. Aggrieved by the order passed by the Board of Revenue, the assessee sought reference and it is at the instance of the assessee that the aforesaid question of law has been referred to this Court for its opinion.