2011 (3) TMI 1507

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....cking materials and containers which had been commonly known as "pet preform". It is claimed that the particular item was a miniature form of plastic bottle which was used in packing pharmaceuticals, oils, mineral water, cold drinks, etc. The said item was manufactured from plastic granules. The "pet preforms" were then expanded by blowing blasts of heat and thereby it took the regular shape of plastic bottles used for packing cold drinks, mineral water, oils, pharmaceuticals, etc. The petitioners concerned went on paying taxes regularly at four per cent. It is alleged that on December 7, 2010, the Deputy Commissioner of Sales Tax, Siliguri Charge, Siliguri, issued a notice in form 20, with a direction upon the petitioners to pay Rs. 47,....

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....ding the "pet preform" by blowing hot air into it. The basic material for manufacturing 'pet preform' was plastic granules which were taxed at four per cent. The final product of container of plastic is also, thus, liable to be taxed at four per cent, as contended by Mr. Bhat tacharyya. Claiming that materials for packing or containing articles like oil, pesticides, etc., have been specified in tariff code No. 3923.30.90, Mr. Bhattacharyya has submitted that the item specified has also incorporated in the Schedule C, Part III of the VAT Act, 2003. Such being the formation and shape, a "pet preform", it is, therefore, liable to be taxed at four per cent. Referring to the case of Lt. Governor, Delhi v. Ganesh Flour Mills Co. Ltd. report....

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....was urged on behalf of the State that the tin sheets and tin plates did not constitute containers, nor could be called materials intended for being used for packing of goods for sale. Rejecting the stand of the State, the apex court held that the fact that tin sheets and tin plates had to be subjected to the process of cutting and moulding into tin containers would not take them out of the category of materials intended for being used for the packing of goods for sale. It was viewed that cutting and moulding were essential for putting the tin sheets and tin plates into shape with a view to adapt them for actual user. Herein also the item in question, i.e., "pet preform", is moulded in such a way as to give it shape of containers of differen....