Packing material for exempt goods is not separately taxable when no distinct charge is recovered and the statutory exemption applies.

Tin containers used to pack exempt snuff were held not separately taxable because the containers were necessary for sale and no separate price was charged for them. On these undisputed facts, the last proviso to section 5(1) of the Rajasthan Sales Tax Act, 1954 was satisfied, so the packing material fell within the statutory exemption. The reference was answered against the Revenue and the revision was dismissed.

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Issues: Whether tin containers used for packing exempt snuff were taxable when no separate charge was recovered for the containers and the issue of implied sale was raised.

Analysis: The sale transaction was found to relate to snuff packed in tin containers. The containers were necessary for sale of the snuff and no separate price was charged for them. On these undisputed facts, the requirements of the last proviso to sub-section (1) of Section 5 of the Rajasthan Sales Tax Act, 1954 were satisfied. The decision also noted that the proviso itself was sufficient to answer the reference, making further interference unwarranted.

Conclusion: The containers were not separately taxable, and the reference was answered against the Revenue.

Final Conclusion: The revision was dismissed because the packing material attached to exempt goods, without a separate charge, fell within the statutory exemption.

Ratio Decidendi: Where exempt goods are sold in necessary packing material and no separate price is charged for the packing, the packing material is not separately taxable under the proviso to Section 5(1) of the Rajasthan Sales Tax Act, 1954.

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