TaxTMI 
TaxTMI 
2008 (2) TMI 804
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.... it as packing material under entry 102 of the first Schedule to the K.G.S.T Act, 1963. Petitioner was engaged in the manufacture and sale of polythene film to those engaged in production, packing and sale of milk, oil etc. The main supply of the product was to the milk supplying organisation "MILMA" after printing their logo and name in the polythene sheets. The polythene sheets are converted into polythene bags in the course of packing milk wherein, the automatic packing machine converts the sheets to cover form and packs the same with specified quantity of the milk therein. The petitioner relying on Ext. P1 clarification of the Commissioner of Commercial Taxes on 5-4-2001 collected and remitted tax at the rate of 4% treating polythene fi....
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.... conferred by entry 102 of the First Schedule to the K.G.S.T Act, 1963 (Act 15 of 1963) the Government of Kerala hereby notify the goods mentioned below as packing materials for the purpose of the said entry, namely :- 1. Bituminised materials used in packing of goods. 2. Bottles made of glass or any other materials. 3. Carton, boxes, cones, cylinders or tubes made of paper, corrugated paper or card board paper, labels, paper cuttings. 4. Cellophane tapes. 5. Empty tins, barrels and drums. 6. Jute Hessian cloth....
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....with Section 43 of the K.G.S.T Act is not produced in Court, the learned Government Pleader has produced the copy of the communication issued by the Government on 12-9-2006. I have gone through the said communication and I find that the stand of the Government is that the Commissioner has no authority under Section 59A of the K.G.S.T Act to declare any item as packing material and according to the Government, only the Government has authority to declare any item as packing material. It is also stated in the communication by the Government that the polythene film is not covered by notification of the Government and what is covered among the other items notified is only polythene bags which is not the item sold by this petitioner and therefor....
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....rd "packing case" or "packing material", it will certainly be assessable under the said entry at the rate of 4%. Besides this what the Government is authorised to do, is to notify materials other than those items stated in the entry as packing materials. In fact, among the several items notified by Government are cork sheet, shooks, waste paper etc. which probably may not answer the description of "packing case" or "packing material" within the ordinary connotation of the said terms. The purpose of giving authority to the Government to notify other materials as packing cases or packing materials is to enlarge the scope of the entry so that Government enjoys the power to notify any item which do not come within the meaning of "packing case" ....
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....ause, but for such notification declaring those items also as packing materials, they would not have come within the normal connotation of "packing materials". However, it is seen that the Government has notified certain other items like bottles made of glass, plastic etc. and gunny bags, as packing materials which is an unnecessary exercise engaged in by the Government because without any such notification, those items are intrinsically "packing materials" covered by entry 102 of the Schedule to the Act. Therefore, I am of the view that the Commissioner rightly interpreted entry 102 vide Ext.P1 declaring the polythene film sold by the petitioner as packing material. The statement by the Government in their order that polythene film is not ....