Packing materials incidental to despatch of question papers were not taxable sale value where charges were separately deducted.

Packing materials used only to secure despatch of printed question papers were incidental to the main supply and not an independent object of sale. In the absence of an express contract for sale of the packing materials, no implied contract to sell could be inferred merely because packing was necessary. Where the packing charges were separately shown, rule 6(cc) of the Tamil Nadu General Sales Tax Rules allowed deduction of that separately charged amount. The value of the packing materials was therefore not includible in the assessable turnover, and the assessee was entitled to the deduction.

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Issues: Whether the value of packing materials used for despatch of printed question papers was includible in the assessable turnover, and whether deduction was allowable when the packing charges were separately shown.

Analysis: The packing materials were used only to facilitate secure despatch of the question papers and not as an independent object of sale. In the absence of an express contract for sale of the packing materials, no implied contract to sell them could be inferred merely because packing was necessary. The cost of the packing materials had been shown separately and, under rule 6(cc) of the Tamil Nadu General Sales Tax Rules, such separately charged amount was deductible. The supply of packing materials was therefore incidental to the main transaction and not a taxable sale of the packing materials themselves.

Conclusion: The value of the packing materials was not liable to be added to the assessable turnover, and the assessee was entitled to deduction.

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