JAGATJIT DISTILLING AND ALLIED INDUSTRIES LTD Vs. STATE

JUDGEMENT

(1.) THIS order will dispose of six references (Sales Tax References Nos. 8, 9 and 10 of 1969 and 1, 2 and 2-A of 1970 ). Out of these references, five are under Section 22 of the Punjab General Sales Tax Act, 1948 (East Punjab Act 46 of 1948) (hereinafter referred to as the Act) and the sixth reference is under Section 9 (3) of the Central Sales Tax Act, 1956 (hereinafter referred to as the Central Act) read with Section 22 (1) of the Punjab General Sales Tax Act.

(2.) CERTAIN questions of law were not referred by the Tribunal under Section 22 (1) of the Act. Consequently, an application was made to this Court under Section 22 (2) and a question of law set out below was agreed to be framed in place of question No. (2 ). This question was deemed to have been substituted in all the references :-Whether on the facts and in the circumstances of these cases is the price of bottles liable to sales tax when bottled liquor is sold ?

(3.) THE assessee is the' Jagatjit Distilling and Allied Industries Limited, Hamira. The assessee is engaged in distilling liquor. For purposes of sale, the liquor is either sold in bottles or in barrels. In the present case, we are concerned with the sale of liquor in bottles. The Assessing Authority brought to tax the price of bottles. Its plea was that when liquor was sold in bottles, there was a sale of the bottles as well and that sale was liable to sales tax under the Act. This stand of the department was controverted by the assessee but without success either before the Assessing Authority or the Appellate Authority or the Sales Tax Tribunal. The department took the view that when liquor is sold in bottle there is a sale of the bottle as well and the sale price of the bottle is liable to sales tax. The plea of the assessee that there was no sale of the bottle was negatived.