Commercial use test excludes feeding bottle from packing material exemption; plastic classification left for fresh inquiry.

A feeding bottle is not "packing material" merely because it is shaped like a bottle; its ordinary commercial use is for feeding babies, not for packing commodities, so concessional treatment under the notification was denied. On the tax classification issue, the existing materials were insufficient to conclusively decide whether the article fell under plastics and products of plastic, because the raw material, composition, and any distinction between plastic and polycarbonate required further inquiry. The classification under the relevant entry was therefore set aside and the matter remitted for fresh determination on fuller materials.

---

---

Issues: (i) Whether a feeding bottle sold by the assessee is "packing material" within Notification SRO No. 405/1994 under entry 91 of the First Schedule to the Kerala General Sales Tax Act, 1963; (ii) whether, if not packing material, the feeding bottle is classifiable as a plastic item under entry 101 of the First Schedule to the Kerala General Sales Tax Act, 1963.

Issue (i): Whether a feeding bottle sold by the assessee is "packing material" within Notification SRO No. 405/1994 under entry 91 of the First Schedule to the Kerala General Sales Tax Act, 1963.

Analysis: The notification covered bottles used as packing material, ordinarily for packing commodities in liquid form. A feeding bottle, though a bottle in form, is not ordinarily used for packing a commodity; it is repeatedly used for feeding babies with a nipple and serves a different functional purpose. The commercial and ordinary user test therefore showed that the article did not answer the description of packing material.

Conclusion: The feeding bottle is not packing material and is not entitled to concessional treatment under the notification.

Issue (ii): Whether, if not packing material, the feeding bottle is classifiable as a plastic item under entry 101 of the First Schedule to the Kerala General Sales Tax Act, 1963.

Analysis: The Tribunal had treated the article as falling under plastics and products of plastic, but the materials on record were insufficient to determine the correct classification conclusively. The Court noted that the relevant inquiry required particulars regarding the raw materials used, the composition of the product, and the difference, if any, between plastic and polycarbonate before applying the proper rate of tax.

Conclusion: The classification under entry 101 was set aside and the matter was remanded to the Tribunal for fresh decision after further inquiry.

Final Conclusion: The claim that the feeding bottle was a packing material failed, but the question of its correct tax classification was left open for reconsideration by the Tribunal on fuller materials.

Ratio Decidendi: An article is not "packing material" merely because it is in the form of a bottle; its ordinary commercial use and functional purpose determine whether it falls within the relevant exemption notification.

---