Secondary packing for transport treated as a container, not as liquor packing material, for sales tax purposes.

Cartons used only as secondary packing for transporting liquor bottles were treated as containers, not as packing material sold with the liquor. Because the cartons did not reach the ultimate consumer as part of the primary packing, the court applied the tax rate for containers rather than the rate applicable to the contents. The tax treatment adopted by the Tribunal was upheld, and the revision failed.

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Issues: Whether cartons used for transporting liquor bottles are to be taxed at the rate applicable to the container or at the rate applicable to the contents, namely liquor.

Analysis: The cartons were held to be secondary packing used only for convenience of transport and not packing material that reached the ultimate consumer with the goods. Such cartons were distinguished from the primary packing in which liquor was actually packed. On that basis, the cartons were treated as a container and not as packing material sold along with the contents.

Conclusion: The cartons were taxable as containers under entry 19 of the First Schedule to the Andhra Pradesh General Sales Tax Act, 1957, and not at the rate applicable to the liquor contents.

Final Conclusion: The revision failed and the tax treatment adopted by the Tribunal was upheld.

Ratio Decidendi: Secondary packing used only for transport, which does not reach the ultimate consumer with the goods, is to be treated as a container for taxation purposes rather than as packing material sold with the contents.

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