Separate sale of bottles requires proof; otherwise container turnover follows the beer tax treatment.

Turnover relating to bottles supplied with beer is taxed by examining whether the containers were separately sold under an express or implied agreement, or whether they formed part of an integrated sale with the contents. A separate entry in the bill or description as a deposit is not conclusive; the decisive question is whether the assessee proves a distinct sale of the bottles. Absent such proof, the bottles follow the tax treatment of the beer and are not assessed separately as containers. Section 6-C of the Andhra Pradesh General Sales Tax Act, 1957 is declaratory of this principle.

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Issues: Whether the turnover relating to bottles supplied with beer was liable to be taxed separately as a sale of containers, or whether it formed part of the turnover taxable at the rate applicable to the beer content.

Analysis: The governing principle is that the character of a sale involving packing material or containers depends on the nature of the transaction and whether there is a separate agreement, express or implied, for sale of the container apart from the contents. Mere separate mention of an amount in the bill or description of the amount as a deposit is not conclusive. The decisive inquiry is whether the assessee proves a distinct sale of the bottles; absent such proof, the sale of bottles and beer is treated as one integrated transaction and the container follows the tax treatment of the contents. Section 6-C of the Andhra Pradesh General Sales Tax Act, 1957 is declaratory of that position.

Conclusion: The bottles were not shown to have been separately sold and their turnover was liable to be taxed at the rate applicable to the beer content. The Tribunal's separate taxation of the bottles was set aside.

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