Packaging material classification turns on intended use; plastic bottles and jars sold as goods themselves are not covered.

Plastic bottles and plastic jars made from plastic granules are treated as packaging material only where they are intended and used as containers for notified goods under the relevant notification. On the facts noted, the assessee had described the goods as plastic goods in prescribed forms, and no cogent material supported a finding that they were packaging materials. The Tribunal's contrary view was unsupported by recorded reasons and inconsistent with the findings of the assessing authority and first appellate authority, so its order was set aside.

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Issues: Whether plastic bottles and plastic jars manufactured out of plastic granules could be treated as packaging material under the relevant notification so as to justify the penalty under Section 4B(5) of the U.P. Trade Tax Act.

Analysis: The notification protected raw materials and goods used in the manufacture or packing of notified goods, including packing material. The decisive question was whether the manufactured articles were in fact intended and used as packing material. On the facts noted, the assessee had itself described the goods in the prescribed forms as plastic goods, and there was no cogent material before the Tribunal to hold that they were packaging materials. The Tribunal's view was found unsupported by recorded reasons and contrary to the findings of the assessing authority and the first appellate authority.

Conclusion: Plastic bottles and plastic jars, when sold as goods in themselves for consumer use and not as packing containers for notified goods, do not fall within the description of packaging material; the Tribunal's order was not sustainable and was set aside.

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