Deeming provision on packing materials bars inquiry into separate sale agreements or parties' intention for tax treatment.

Section 6-C of the Andhra Pradesh General Sales Tax Act, 1957, as amended, was treated as valid, and the challenge to its constitutional validity had already been rejected. The provision deems the tax on packing material sold with goods to be the same as the tax on the goods packed or filled, whether or not there is a separate sale or agreement for the packing material. In light of that deeming clause, the assessing authority could not enquire into the contract terms or the parties' intention to impose separate taxation on containers and packed goods. The request to compel such an enquiry was therefore rejected.

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Issues: Whether section 6-C of the Andhra Pradesh General Sales Tax Act, 1957, as amended, was unconstitutional and whether the assessing authority could examine the separate contract or intention of the parties in taxing containers and packing materials sold with goods.

Analysis: The challenge to the constitutional validity of section 6-C had already been rejected. The provision expressly declares that the tax on packing material sold with goods shall be the same as that on the goods packed or filled, whether or not there is a separate sale or agreement for sale of the packing material and the goods. In view of this deeming clause, the assessing authority had no discretion to investigate the ingredients of the contract or the intention of the parties for the purpose of separate taxation of containers and packed goods. The reasoning was reinforced by the understanding that a materially similar provision had been upheld and that the Supreme Court had treated an in pari materia sales tax provision in the same manner.

Conclusion: The challenge failed and the request to direct the assessing authority to determine the contract ingredients and intention of the parties was rejected.

Ratio Decidendi: Where the statute by a deeming provision fixes the tax treatment of packing materials sold with goods, the assessing authority cannot disregard that legislative mandate by enquiring into a separate sale agreement or the parties' intention.

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