Composite sale of packed goods attracts tax at the contents' rate where no separate sale of packing material is shown.

Packing material sold as part of a composite sale of vanaspati ghee attracts the tax rate applicable to the contents, not the concessional rate for empty tins, where no separate sale of the packing material is established. Separate billing of the tins is not ative by itself; the decisive question is whether the facts show an independent sale of the packing material or merely an integral packaging arrangement. On the facts stated, the tins had an intimate connection with the sale of the ghee, so the higher rate applicable to vanaspati ghee applied.

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Issues: Whether tins sold filled with vanaspati ghee, for which separate charges were shown in the bills, were taxable at the concessional rate applicable to empty tins or at the rate applicable to the contents.

Analysis: The applicable rule was proviso (v) to section 5(1) of the Rajasthan Sales Tax Act, 1954, under which packing material, when sold with goods and not separately charged for in substance, bears the same rate as the goods themselves. The separate entry of the cost of tins in the invoice was held not to be decisive where the facts showed that the assessee was not carrying on an independent business of empty tins and that the tins were part of a composite arrangement for sale of vanaspati ghee packed in tins. The crucial question was whether there was a separate sale of the packing material, express or implied, and on the facts found the tins had an intimate connection with the sale of the goods.

Conclusion: The tins were liable to tax at 10 per cent, the rate applicable to vanaspati ghee, and not at the concessional rate applicable to empty tins.

Ratio Decidendi: Where packing material is sold as part of a composite sale of the goods packed therein, the rate applicable to the goods applies even if the invoice separately shows the price of the packing material, unless a separate sale of the packing material is established.

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