Separately charged packing material can be taxed even when the exempt goods inside are not subject to trade tax.

Packing material sold separately with exempt country liquor was held taxable under section 3AB of the U.P. Trade Tax Act, 1948, because the provision addresses goods sold together with packing material and removes the need to examine an express or implied contract for its sale. Where the bill separately charged the price of poly pouches, the Court treated the liquor and the pouches as distinct transactions. The statutory scheme and departmental materials did not exempt separately sold packing material merely because the contents were exempt. The poly pouches were therefore liable to trade tax.

---

---

Issues: Whether packing material sold separately with exempt country liquor was liable to trade tax under section 3AB of the U.P. Trade Tax Act, 1948.

Analysis: Section 3AB begins with a non obstante clause and governs cases where goods are sold together with packing material. The provision was enacted to remove the need for inquiry into whether there was an express or implied contract for sale of packing material and to provide a uniform rule where packing material accompanies the goods. The petitioner had separately charged the price of the poly pouches in the bills, showing a distinct sale consideration for the packing material. On the admitted facts, the sale of liquor and the sale of poly pouches were separate transactions. The Court also relied on the departmental circulars and the later revision of the departmental view to hold that the statutory scheme did not exempt separately sold packing material merely because the contents were exempt.

Conclusion: The separately charged poly pouches were liable to trade tax and section 3AB did not bar taxation in the facts of the case.

---