2009 (11) TMI 860

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....nt which sells the cement in bags and the bags for selling the cement is purchased as packing material by the assessee which according to the assessee had suffered sales tax at the time of purchase of MT bags. For the assessment year April 1, 1994 to March 31, 1995, the assessee filed returns under the provisions of the Karnataka Sales Tax Act, 1957. The contention of the assessee before the assessing officer was that in view of the notification dated March 30, 1994 in respect of the bags used as package material is liable to pay at one per cent. and not at 2.5 per cent. The contention of the assessee has been rejected by the assessing officer and he has been called upon to pay tax at 2.5 per cent. only. Aggrieved by the order of the assess....

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....al used for packing the cement and entitled to pay turnover tax at one per cent. only. He further contends that in view of the notification dated March 30, 1994 the petitioner is liable to pay one per cent. only. The notification reads as hereunder: "No. FD 190 CSL 93(IV), Bangalore, dated 30th March, 1994 Karnataka Gazette, Extraordinary, dated 31st March, 1994 (Cancelled with effect from April 1, 2002, by Notification No. FD 54 CSL 2002(1), dated March 30, 2002 (Sl. No. 893) In exercise of the powers conferred by section 8A of the Karnataka Sales Tax Act, 1957 (Karnataka Act 25 of 1957), the Government of Karnataka hereby reduces with effect from the first day of April, 1994, the tax payable by a dealer under section 6B of the said Act....

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....not manufacturing the package material. If the assessee is purchasing the package material from any other dealer if the same has suffered tax and the same package material is used by the assessee for selling its product, the package material has to be considered as subsequent sale only. In such an event it attracts only one per cent. as per the notification dated March 30, 1994 which had been gazetted on March 31, 1994. But the learned Government Advocate contends that the assessee has not placed any material to show that the package material had been purchased by it to sell its cement and has not produced any material to show that the package material has suffered tax at earlier point of time. Therefore she contends the case of the asse....