Packing cartons for bottled liquor treated as part of the sale and taxed at the liquor rate.

Big paper cartons used for bulk packing and transport of bottled liquor were treated as part of the liquor sale for taxation purposes under the Kerala General Sales Tax Act. The Court followed the earlier binding view that cardboard cartons used to pack bottled liquor form part of the goods sold and are exigible at the liquor rate. On that basis, the cartons were held taxable at the rate applicable to liquor, and the challenge failed.

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Issues: Whether big paper cartons used for bulk packing of liquor were liable to be taxed at the rate applicable to liquor under section 5(5) of the Kerala General Sales Tax Act.

Analysis: The liquor was sold in bottles, and some varieties were packed in mono cartons, while big paper cartons were used for packing several bottles for transport and distribution. The Court applied the earlier decision holding that cardboard cartons used for packing bottled liquor formed part of the goods sold and were therefore exigible to tax at the rate applicable to liquor. The Court found no reason to doubt the correctness of that binding decision.

Conclusion: The cartons were liable to be taxed at the rate applicable to liquor, and the revision cases were without merit.

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