1975 (6) TMI 49

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....Kerala State. Most of the petitioner's transactions are stated to be inter-State sales covered by C forms issued by the sales tax department. Since the oil cannot be despatched to far-off places outside the State by rail or road without proper packing, tins are utilised for that purpose. The petitioner also incurs labour charges for packing. The value of the containers (tins) and packing charges are shown separately in the petitioner's accounts, bills and invoices. 3.. For the assessment year 1966-67 an amount of Rs. 1,75,839 was shown separately as the total value of the packing materials and labour charges by the petitioner. It was the petitioner's contention before the Sales Tax Officer, Special Circle, Quilon, on whose file the petitio....

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....packing materials, would fall within the purview of the provision contained in rule 9(f) of the said Rules, he has cited the decisions reported in State of Madras, In re[1956] 7 S.T.C. 355., Ramco Cement Distribution Co. (P.) Ltd. v. State of Kerala[1973] 31 S.T.C. 226; 1973 K.L.T. 118. and State of Tamil Nadu v. Cement Distributors P. Ltd.[1973] 31 S.T.C. 309 (S.C.); A.I.R. 1973 S.C. 668. Rule 9(f) referred to above reads as follows: "9. In determining the taxable turnover, the amounts specified in the following clauses shall, subject to the conditions specified therein, be deducted from the total turnover of the dealer............ (f) all amounts falling under the following two heads, when specified and charged for by the dealer separat....

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....t in so far as the value of the containers is concerned. Section 8(2A) of the Central Act reads as follows: "Notwithstanding anything contained in sub-section (1A) of section 6 or in sub-section (1) or sub-section (2) of this section, if under the sales tax law of the appropriate State the sale or purchase, as the case may be, of any goods by a dealer is exempt from tax generally or is subject to tax generally at a rate which is lower than three per cent (whether called a tax or fee or by any other name), the tax payable under this Act on his turnover in so far as the turnover or any part thereof relates to the sale of such goods shall be nil or, as the case may be, shall be calculated at the lower rate. Explanation.-For the purposes of th....