Packing turnover exemption applies even without separate invoice value when goods are not taxable in the seller's hands.

Packing turnover linked to petroleum products not liable to tax in the assessee's hands was held deductible under rule 6(cc)(ii) of the Tamil Nadu General Sales Tax Rules, even though the container value was not separately shown in the invoice. The court read the rule as allowing deduction of packing charges for goods not taxable in the assessee's hands whether or not separately specified and charged. It distinguished authorities on composite sales, control-order pricing and packing charges in taxable-goods cases, holding them inapplicable where the main goods themselves were outside tax in the assessee's hands. The assessee was therefore entitled to exemption for the container turnover.

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Issues: Whether the turnover attributable to containers or packing materials used for selling petroleum products, which were not taxable in the assessee's hands as second sales, was exempt under rule 6(cc)(ii) of the Tamil Nadu General Sales Tax Rules even when the container value was not shown separately in the bill.

Analysis: Rule 6(cc)(ii) permits deduction of amounts falling under packing charges in respect of goods not liable to tax at the hands of the assessee, whether or not such amounts are separately specified and charged. The Court distinguished decisions dealing with composite sales, control-order pricing, and rules concerning packing charges included in the sale price of taxable goods, holding that those authorities did not govern a case where the main goods themselves were not taxable in the assessee's hands. On a plain reading of the rule, the exemption was available irrespective of whether the packing value was separately stated.

Conclusion: The sale turnover attributable to the containers was exempt, and the assessee was entitled to relief.

Ratio Decidendi: Where packing materials are sold along with goods not liable to tax in the assessee's hands, rule 6(cc)(ii) grants exemption for the packing turnover whether or not it is separately charged in the invoice.

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