Packing material classification fails for plastic garment hangers used mainly for display, not containment or protection.

Plastic hangers used with ready-made garments were examined to determine whether they qualify as packing materials under the West Bengal Value Added Tax Act, 2003. Applying common and commercial parlance, the article was treated as packing material only if it is ordinarily used to contain, protect, or pack goods in the nature of a container or equivalent packing aid. The hangers were found to serve mainly for hanging and displaying garments, not for packing or protecting them in the ordinary sense. Decisions concerning other packing aids were distinguished on their facts, and the lower tax treatment was held unavailable.

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Issues: Whether plastic hangers used for keeping ready-made garments in a saleable and crease-free condition could be treated as packing materials under the West Bengal Value Added Tax Act, 2003.

Analysis: The expression "packing material" was examined in its common and commercial parlance. The test applied was whether the article is ordinarily used for packing purposes and whether it can hold or protect the goods as a container or equivalent packing aid. The item in question was found to be used mainly for hanging and displaying garments, not for containing, packing, or protecting them in the ordinary sense. The Court also noted that the statutory scheme for lower tax treatment covered containers and packing materials of the kind that hold goods and protect them from damage, while hangers were not included among such items. The reliance placed on decisions dealing with articles used as packing aids was distinguished on facts.

Conclusion: Plastic hangers are not packing materials within the meaning of the Act and do not qualify for the lower rate of tax claimed.

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