Non obstante clause in packing material tax provisions can override single-point levy and permit taxation on gunnies sold with goods.

Packing material sold with goods can be taxed at the same rate as the contents under section 6-C of the Andhra Pradesh General Sales Tax Act, 1957, because the provision operates through a non obstante clause overriding section 5 and the First Schedule. The provision is not confined to the first sale of the packing material, and no exception is implied for gunnies that have already suffered tax within the State. On this plain reading, section 5(1) and entry 19(iii) must yield where they conflict with section 6-C, so gunnies sold along with rice may be taxed again despite the single-point levy scheme.

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Issues: Whether gunnies already subjected to tax within the State could again be taxed under section 6-C of the Andhra Pradesh General Sales Tax Act, 1957 when sold along with rice, notwithstanding the single-point levy prescribed in entry 19(iii) of the First Schedule.

Analysis: Section 6-C, as amended, provides that the rate of tax on packing material sold with the goods shall be the same as that of the goods packed or filled, and it opens with a non obstante clause overriding section 5 and the connected levy provisions. On a plain reading, the provision is not confined to the first sale of the packing material and does not contain any exception for packing material that has already suffered tax. The Court held that section 5(1) and the First Schedule must yield to section 6-C in case of conflict, and that the absence of express words dealing with the point of levy does not justify reading such a limitation into the provision. The Court also held that section 6-C is a levy provision and must be enforced according to its clear language, even if the result is that gunnies may be taxed again when sold with their contents.

Conclusion: Gunnies that have already suffered tax within the State can again be subjected to tax under section 6-C when sold along with their contents, despite the first-sale levy in entry 19(iii) of the First Schedule.

Ratio Decidendi: Where a fiscal provision with a non obstante clause is clear and unambiguous, its plain language must be given full effect and it will override inconsistent schedule entries, even if the result is multiple-point taxation.

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