Separate packing charges remain deductible when billed apart from sale price, even if they include packing material cost.

Packing charges are deductible under rule 5(1)(g)(ii) when they are separately specified and charged apart from the sale price, even if the amount includes the cost of packing materials. The decisive test is separate billing from the price of the goods, not a further bifurcation into labour and materials. The taxing authority cannot dissect the composite packing charge to deny the statutory deduction. On that basis, the assessee's claim was allowable.

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Issues: Whether charges for packing, when separately specified in the bills but inclusive of the cost of packing materials, are deductible under rule 5(1)(g)(ii) from the gross turnover.

Analysis: Rule 5(1)(g)(ii) allows deduction of amounts falling under the head of packing charges when they are specified and charged separately, without being included in the price of the goods sold. The decisive test is separate billing of packing charges, not a further splitting of those charges into labour and the cost of packing materials. Even if the packing charge is an inclusive one covering both labour and materials, it remains within the scope of the deduction so long as it is separately shown from the sale price. The Department cannot dissect the packing charge into constituent elements for the purpose of denying the exemption.

Conclusion: The assessee's claim fell within rule 5(1)(g)(ii), and the deduction was allowable.

Ratio Decidendi: Where packing charges are separately specified and charged apart from the sale price, the statutory deduction is available even if those charges include the cost of packing materials, and the taxing authority cannot bifurcate them further into labour and material components.

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