Transport drums are not unit containers where they remain manufacturer-owned and are used only for bulk oil movement.

Goods cleared in drums or barrels used only for transport were not treated as sales in unit containers for purposes of denying exemption under Notification No. 67/71 dated 29-5-71. The deciding authority found no evidence that the drums or barrels were ever sold by the manufacturers, and the record showed that they were repeatedly used for the same transport purpose while remaining the petitioners' property. On that factual basis, the containers were characterised as transport containers for bulk oil, not as unit containers ordinarily intended for sale, so the exemption was not denied on that ground.

---

---

Issues: Whether the sale of the goods cleared in drums or barrels used only for transport could be treated as sale in unit containers so as to deny the benefit of exemption under Notification No. 67/71 dated 29-5-71.

Analysis: The deciding authority found no evidence that the drums or barrels were sold by the manufacturers at any stage. The record instead showed that the containers were used repeatedly for the same purpose and continued to remain the property of the petitioners. On this factual basis, the drums were treated as containers employed merely for transport of bulk oil and not as unit containers ordinarily intended for sale.

Conclusion: The sales effected in drums were not sales in unit containers, and the benefit of exemption was not denied on that ground.

---