Packing material classification for sales tax turned on goods nature, trading treatment, and tariff classification.

Silair air-bubble film was analysed for classification as packing material under section 5(1A) of the Punjab General Sales Tax Act, 1948. The Tribunal's approach relied on the nature of the goods, their treatment in the assessee's trading account, and the accepted classification under Chapter 39.23 of the Central Excise Tariff Act, 1985. That factual classification was also supported by the assessee's failure to challenge the tariff classification. On that basis, the appellate court found no reason to disturb the conclusion that the goods fell within packing material taxable at the first stage.

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Issues: Whether silair air-bubble film was correctly treated as packing material taxable at the first stage under section 5(1A) of the Punjab General Sales Tax Act, 1948.

Analysis: The classification adopted by the Tribunal was based on the nature of the goods, their treatment in the assessee's own trading account, and the accepted classification of the item under Chapter 39.23 of the Central Excise Tariff Act, 1985. The finding was also supported by the absence of any challenge by the assessee to that classification. The appellate court found no reason to disturb this factual conclusion.

Conclusion: The goods were rightly held to be packing material taxable at the first stage, and the assessee failed on this issue.

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