1998 (8) TMI 33

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....The assessee is a manufacturer of soft drinks. The bottles are used by the assessee as containers for the soft drinks sold by it. The assessee received deposits from its customers for the bottles. Such deposits being returnable after the bottles were returned. The intention of the assessee was to reuse the bottles, as that would keep down the cost of the marketing, and by ensuring that the price f....

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....tes the scheme involved an initial sale and subsequent buy-back. That decision was explained by the Supreme Court in the case of United Breweries Ltd. v. State of A.P. [1997] 105 STC 177; [1997] 3 SCC 530. The court, after referring to the special facts of the case considered in Punjab Distilling Industries Ltd. [1959] 35 ITR 519 (SC), and distinguishing the same, held that the matter is always....

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.... sections 20 to 23 of the Sale of Goods Act would be applicable only when there was no contrary intention evident in the transaction between the parties. The Tribunal has held that the intention of the assessee in receiving the deposit was not to treat the delivery of the bottles as part of the transaction of sale, and the deposit was not intended to be regarded as the proceeds of the sale. The....