Second sales exemption for empty tins denied where prior taxation was not proved.

Empty tins sold separately were not entitled to second sales exemption under the Tamil Nadu General Sales Tax Act, 1959. The Tribunal held that section 3(7) merely ensures containers or packing materials are taxed at the same rate as the goods sold with them, but it does not exempt containers from tax when they are sold on their own. As the assessee failed to produce concrete proof that the tins had already suffered tax at an earlier sale, the exemption claim was rejected and the sale was held taxable.

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Issues: Whether the sale of empty tins was eligible for second sales exemption or was exigible to tax under the Tamil Nadu General Sales Tax Act, 1959.

Analysis: The Tribunal held that section 3(7) only ensures that containers or packing materials are taxed at the same rate as the goods sold in them, and does not mean that the containers themselves escape tax when sold separately. It relied on the principle that packing materials form part of the goods as marketed, but that principle does not dispense with proof that the tins had already suffered tax at an earlier sale. In the absence of concrete proof that the empty tins had independently suffered tax earlier, the claim to second sales exemption could not succeed.

Conclusion: The sale of empty tins was held taxable and the claim for second sales exemption was rejected, in favour of Revenue.

Final Conclusion: The revision petition failed, and the assessment of tax on the sale of empty tins was sustained.

Ratio Decidendi: Where empty containers sold separately have not been shown to have suffered tax earlier, the second sale exemption is unavailable and the sale is liable to tax.

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