Separate sale of tin containers means taxation follows the containers' own character, not the rate on the contents.

Packing material sold as a separate commercial commodity is taxed according to its own character, not at the rate applicable to the contents. Where tin containers are separately charged and sold under an express or implied agreement, they are not treated as an inseparable incident of the edible oil inside them. The applicable proviso to section 5 of the Rajasthan Sales Tax Act, 1954, therefore does not shift the tax rate to that of the goods contained. On that reasoning, the tins fall under the notification dated 27 March 1971 and are taxable at 3 per cent rather than 7 per cent.

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Issues: Whether tin containers sold along with edible oil, and separately charged in the bills, were liable to sales tax at 3 per cent as empty tins under the notification dated 27 March 1971 or at 7 per cent as goods not otherwise provided for.

Analysis: The applicable proviso to section 5 of the Rajasthan Sales Tax Act, 1954 made packing material taxable at the same rate as the goods themselves only when such packing material was not separately charged for. The controlling consideration was whether there was an express or implied agreement to sell the containers as packing material along with the contents. The earlier decisions relied on by the Revenue were distinguished because those cases did not involve a dealer carrying on the business of buying and selling tins with an express contract for their sale. The Court accepted the principle that where tins are themselves dealt in as goods and are sold under an agreement, the containers are not taxed as part of the oil but according to their own taxable character under the notification.

Conclusion: The tin containers were liable to be taxed at 3 per cent under the notification dated 27 March 1971, and not at 7 per cent.

Ratio Decidendi: Where packing material is sold under an express or implied agreement as a separate commercial commodity and not merely as an inseparable incident of the contents, it is taxable at the rate applicable to that packing material and not at the rate applicable to the goods contained in it.

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