ASSISTANT COMMERCIAL TAX OFFICER Vs. GANAPATI TRADING CO.

JUDGEMENT

(1.) THIS case relates to levy of tax on the packing material contained in which principal goods were sold as one single sale transaction. The tax has been imposed separately on the principal commodity and the packing material by assuming an implied sale of packing material independent of principal commodity by invoking Sub -section (1) of last proviso to Section 5 of the Rajasthan Sales Tax Act, 1954.

(2.) THE assessee raised an objection about levying of tax on such deemed sale by invoking the said proviso which is only a part of the rate structure and not a part of charging tax for levying tax by assuming the sales of packing material to exist which in fact have not taken place independent of the principal commodity.

(3.) IN the aforesaid case, the court has held that unless the Revenue authorities decide as a fact that sale of packing material has taken place independently of the principal material by establishing that the transfer of property in the packing material has taken place for consideration referable to the transfer of property in packing material, no tax can be levied where there is a single transaction for one sale price by splitting up the sale price by splitting different items of expenses which go to. make the sale price of the commodity as one single unit.