LexLT. GOVERNOR OF DELHI & ORS. versus M/S. GANESH FLOUR MILLS CO. LTD.
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B D F G H I 211 LT. GOVERNOR OF DELHI & ORS. v. M/S. GANESH FLOUR MILLS CO. LTD. January 9, 1973 [K. S. HEGDE, P. JAGANMOHAN REDDY AND H. R. KHANNA., JJ.] Central Sales Tax Act 1956-S. 8(3)(c)-Respondent <dealing in vegetable products applie.d for amendraent of the ~egistration Certifica~l to in,el.ude Tin plates or tin sheets used for packing. Whetl1er l'ei- pondent can invoke the benefit of the sai.d clause. The respondent company is a registered dealer unW:r the Central Sales Tax Act 1956 and deals mainly with vegetable products. It was granted the registration certificate under the Central Sales Tax (Regis· tratiC11> and Turnover) Rules, 1957. In 1958, the respondent applied to the Sales Tax Officer for amendment of the Registration Certificate so as to include Tin· plates or Tin-sheets under Sub·section (3) of Section 8 of the Act on the ground that those goods were used by the respondent for packing its vegetable products for sale. The application was rejected by the Sales Toax Offi.ce'r on the ground that the goods ~o question were "Declared Goods" and therefore, their purchase on the strength of registration certificate could be allowe~ - only if they were to be resold in the form in which they had been purchased. A revision petition against the said drder was dismissed by the Commissioner. of Sales Tax who he]d that the goods in question \Vere not containers and that "Tiin Plates", or "Tin Sheets" did not consti· tute packing material. Further revision filed before the · Chief Commissioner was dismissed. The respondent thereafter, filed an appli· cation for making a reference to the High Court, but it was rejected by the Chief Commissioner on the ground of limitation. The res- po,lldent, thereafter, moved the High Court for direction to th~ Chief Commissioner to refer the question of la\V to the High eourt. Tn addition, the respondent filed a petition under Art. 226 and 227 of the Constitution for a direction to the appellants to decide the application for amendment of the Registration Certificate in accordance with law. The High Court allowed the writ petition and held that the words in Sec. 8(3) ( c) of the Act were wide enoul!h to cover the goods in question. On appeal to this Court, the appellant raised the following question : The "Tin Sheets and Tin Plates" are not covered by clause (c) of Sub-section (3) of Section 8 of the Act, as those goods comtitute neither "containers nor materials intended for being used fo'r packing of goods for sale." Further as tin sheets. and tin plates cannot be used bv the respondent unless they are converted into containers. the respondents cannot invoke the benefit of S. 8(3)(c), of the Act. Dismissing the appeal, HELD: (i) The materials refeited to in Clause (c) of Sec. 8(3) according to its plain language, should be such as are intended for packing of goods for sate. Once the intention of using the materials for packing of goods for sale is proved, the requirements of the Clauo;e would be satisfied. The fact that tin sheets and tin plates have kl be ~ubje~d by .the responW:nt to the process of cutting, and mouldino into tin containers would not take them out of the category of materia1S intended for being used for the packing of goods 'for sale. The cuttino .and moulding is essential for putting the tin sheet's and tin plates intO 212 SUP~~ME COURT REPORTS [1973] 3 .s.c.R. .shape \vith a view to adapt them fof aCtual user. The process of cutting and moulding does not alter ·the nature of the materials ·intended for use in packing the ·goods for sale. It o,lliy facilitates the actual user (or packing. [214FGJ · (ii} Packing materials aJ'e necessary not only for solid articles, but also for those in liquid and semi-liquid form. In a society that produces food-stuffs and manufactured articles . in one locality and use them. in another, a wrapping or container is necessary during storage, transport and sale. [215-B] - Encyclopaedia 'of Britannica, Vol. 17 of 1968 Edn. p. 22 referred to,. , · The functions of a package are ( 1) to contain a corivenient sizej_ unit or amount of a product; l1j to protect it in transit; (3) to aid its safe delhrery to the co.nsumer and ( 4) in some cases, to display the product or promote its sale, or <to act as a dispenser of it. Tue packing industry has expanded to meet the demands for processed and pt"eserved foods rather than seasonal cr
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