Inter-State sales turnover deductions under the Central Sales Tax Act excluded packing material cost, with Mysore rule deductions held inapplicable.

Inter-State sales assessed under the Central Sales Tax Act were governed by section 8-A, inserted by the amending Act of 1969 with retrospective effect. That provision barred deductions from the aggregate sale prices, except as otherwise provided in section 8-A(1), so deductions available under rule 6(4) of the Mysore Sales Tax Rules could not be applied to turnover assessed under the Central Sales Tax Act. The cost of packing materials was therefore not deductible, and the levy on that amount was upheld.

---

---

Issues: Whether the assessee was entitled to deduction of the cost of packing materials under the Mysore Sales Tax Rules in an assessment under the Central Sales Tax Act.

Analysis: The assessment related to inter-State transactions and was governed by the Central Sales Tax Act as amended by Central Act 28 of 1969. Section 5 of the amending Act inserted section 8-A in the Central Sales Tax Act. Sub-section (2) of section 8-A provided that, save as otherwise provided in sub-section (1), no deduction shall be made from the aggregate of the sale prices in determining turnover under that Act. On that basis, deductions under rule 6(4) of the Mysore Sales Tax Rules were held inapplicable to assessments under the Central Sales Tax Act. The amendment was expressly retrospective.

Conclusion: The assessee was not entitled to deduct the cost of packing materials, and the levy on that amount was upheld.

---