https://www.taxtmi.com/caselaws?id=156304 Liability under section 7-A(1)(b) of the Tamil Nadu General Sales Tax Act, 1959 arises only when goods purchased without tax under sections 3, 4 or 5 are later disposed of otherwise than by sale in the State. In assessing dried plantain bark used as packing material for snuff, the material issue was whether it was separately transferred without consideration or sold as part of the composite sale of snuff. The absence of a separate sale did not by itself disprove sale; the relevant inquiry was whether the packing cost formed part of the snuff sale price. On the facts, no finding showed exclusion of that cost, so the packing was treated as essential to the sale and section 7-A(1)(b) was not attracted. en-us Fri, 05 Apr 1991 00:00:00 +0530 Tue, 17 Sep 2013 17:51:42 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=156304 Liability under section 7-A(1)(b) of the Tamil Nadu General Sales Tax Act, 1959 arises only when goods purchased without tax under sections 3, 4 or 5 are later disposed of otherwise than by sale in the State. In assessing dried plantain bark used as packing material for snuff, the material issue was whether it was separately transferred without consideration or sold as part of the composite sale of snuff. The absence of a separate sale did not by itself disprove sale; the relevant inquiry was whether the packing cost formed part of the snuff sale price. On the facts, no finding showed exclusion of that cost, so the packing was treated as essential to the sale and section 7-A(1)(b) was not attracted. Case-Laws VAT and Sales Tax Fri, 05 Apr 1991 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=156304