Indian Kanoon - Search engine for Indian Law

(1) The petitioner is a dealer registered under the Central Sales Tax Act, 1956 which will hereafter be referred to as the Act, and was granted a Registration Certificate under Rule 5(1) of the Central Sales Tax (Registration and Turnover) Rules, 1957. In the appropriate columns (a) and (b) the Words "Empty Tins" and "Tin sheets" were respectively entered accoring to its own application.

(2) On 11th December, 1958 the petitioner applied to the Sales Tax Officer, Ward No. 5, Delhi to amend its Registration Certificate so as to include "Tin Plates" or "Tin Sheets" on the allegation that those were used by the petitioner for packing its vegetable products for sale under Section 8(3) of the Act.

(3) By his order dated 19th January, 1959 the application was refused by the Assistant Sales Tax officer on the ground that those were declared goods and as such their purchase on the strength of the Registration Certificate could be allowed only if they were to be resold in the same form in which they were purchased.

(4) The petitioner filed a revision petition before the Commissioner of Sales Tax, Delhi against the order of the Assistant Sales Tax Officer, Delhi, but the application was dismissed on the ground that "Tin Plates" or "Tin Sheet" were nto declared goods or goods of special importance but on the toher hand they were goods which fell in the category mentioned in sub-section (e) or sub-section (d) of Section 8(3) if they were either containers or material used for packing of goods for sale. The Commissioner futher held that "Tin Plates" or "Tin Sheets in themselves are certainly nto containers as they have to undergo manufacturing process before they can be used as containers and, therefore, they do nto fall into the first category. They also do nto fall within the second category of being material used for packing vegetable oil because according to him the Word "Container" is usually used when the contents are liquid or sometimes even solid but the word "packing" is invariably used for holding solid contents only. He, therefore, held that "Tin Plates" or "Tin Sheets" did nto constitute packing material in the present context.

(6) Against the order of refusal of its application by the Chief Commissioner the petitioner filed two applications in the High Court of Punjab at Delhi; one for mandamus under Section 21(2) (6) of the Bengal Finance (Sales Tax) Act, 1941 read with section 9(3) of the Central Sales Tax Act 1956 directing the Chief Commissioner to refer to the High Court particular Questions formulated by the petitioner while the toher for grant of a writ of mandamus requiring the respondent to suitably amend the certificate of Registration granted to the petitioner, so as to include "Tin Plates" and "Tin Sheets" as being materials intended for being used for packing of goods and. also to issue appropriate writ, order or direction calling upon the respondents to decide the petitioner's application dated 29th January, 1960 in accordance with law.

(10) A plain reading of the three clauses of sub-section (3) shows that clause (b) cannto be availed of by the petitioner so far as the petitioner's request for amendment of the certificate is concerned.

(11) The petitioner's counsel has, however, strongly urged that "Tin Sheets" and "Tin Plates" are "materials intended for being used for packing of goods for sale" and, therefore, the case is clearly covered by clause (e). On the toher hand the contention that has weighed with the Sales Tax authorities and is pressed upon us by the learned counsel appearing for them is that clause (e) is intended to apply either to readymede containers such as btotles, tins or boxes or to packing materials in which the goods to be sold are merely wrapped. It is urged that one cannto talk of "Tin Plates" or "Tin Sheets" being used for packing oil and that such an expression would be doing violence to English Language. "Tin Plate", it is argued, is obviously used for the manufacture of containers as stated in the certificate of Registration of the petitioner and the oil is contained in those tin containers. In the circumstances the pharase ''materials intended for being used for the pecking of goods for sale" can only mean those materials in which the goods to be sold are merely wrapped and is in the context to be confined to wrapping of solid goods.