TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
of 
of 
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of of 
All Case Laws
of of All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of <h1>Entry tax valid on polythene sacks for seedlings under Karnataka law</h1> The court upheld the validity of the entry tax levy on high density polythene woven sacks imported for seedling purposes, ruling that the sacks qualified ... - Issues:Validity of entry tax levy on high density polythene woven sacks imported into a local area for raising seedlings under the Karnataka Tax on Entry of Goods into Local Areas for Consumption, Use or Sale Therein Act, 1979.Analysis:The petitioner, a registered dealer importing high density polythene woven sacks into a local area, challenged the entry tax levy on the sacks used by State Departments for raising seedlings. The assessing authority imposed a 1% entry tax on the petitioner's total turnover of the sacks, leading to the writ petition against the order and demand notice.The petitioner contended that the woven sacks, though punched with holes for seedling growth, did not qualify as 'packing material' under entry 16-A of the Act. The counsel argued that using the sacks for seedlings did not constitute 'packing purposes' as required by the entry to attract entry tax. The entry 16-A listed various packing materials, including bags, which could be interpreted broadly to include punched hole sacks.The court examined the definition of 'pack' from dictionaries to determine the meaning of 'packing material.' It concluded that packing involves compactly storing or carrying items, and the mode of packing varies based on the article's nature. The court highlighted that the packing material used depends on the article, and not all articles require the same type of packing. In the case of seedlings, packing them at the roots with surrounding mud in HDPE punched hole sacks was deemed a form of packing for their growth, storage, and transportation.The court emphasized that the term 'bags' in entry 16-A(iii) was broad enough to include punched hole sacks used for seedlings. The legislative use of 'and the like' at the end of each category indicated a non-exhaustive description of packing materials. Referring to a previous case, the court clarified that if buyers commonly use an article for packing purposes, it qualifies as packing material. Since the sacks were used for growing, carrying, and storing seedlings, they met the criteria for being considered packing material under the Act.In conclusion, the court found no legal or jurisdictional error in the assessing authority's order, dismissing the writ petition without costs. The judgment upheld the validity of the entry tax levy on high density polythene woven sacks imported for seedling purposes, emphasizing that the nature of packing material depends on the article being packed.
TaxTMI 
TaxTMI 
