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Mulji Ratanshi and Company Vs. State of Kerala - Court Judgment

LegalCrystal Citation
SubjectSales Tax
CourtKerala High Court
Decided On
Case Number T.R.C. No. 4 of 1971
Judge
Reported in[1973]30STC596(Ker)
AppellantMulji Ratanshi and Company
RespondentState of Kerala
Appellant Advocate T.L. Viswanatha Iyer and; E.R. Venkiteswaran, Advs.
Respondent AdvocateGovernment Pleader
DispositionPetition allowed
Cases Referred(S.C.) and M. A. Razack & Company v. The State of Madras
Excerpt:
- .....the question we have to decide in this case is, whether the gunny bags, in the case of a sale of copra packed in gunny bags, can be treated as a commodity on which the parties had a different contract. the principle laid down by the supreme court in such cases is found in commissioner of taxes, assam v. prabhat marketing co. ltd. [1967] 19 s.t.c. 84 (s.c.) and m. a. razack & company v. the state of madras [1967] 19 s.t.c. 135 (s.c.). we are of opinion that in the case before us the price of the bags in which the copra was packed and sold is insignificant compared to the price of the copra itself. therefore, the principle laid down by the supreme court applies to the case.2. the result is that the revision case is allowed. the sales tax officer will be entitled to collect only 2 per.....
Judgment:

T.C. Raghavan, C.J.

1. The question we have to decide in this case is, whether the gunny bags, in the case of a sale of copra packed in gunny bags, can be treated as a commodity on which the parties had a different contract. The principle laid down by the Supreme Court in such cases is found in Commissioner of Taxes, Assam v. Prabhat Marketing Co. Ltd. [1967] 19 S.T.C. 84 (S.C.) and M. A. Razack & Company v. The State of Madras [1967] 19 S.T.C. 135 (S.C.). We are of opinion that in the case before us the price of the bags in which the copra was packed and sold is insignificant compared to the price of the copra itself. Therefore, the principle laid down by the Supreme Court applies to the case.

2. The result is that the revision case is allowed. The Sales Tax Officer will be entitled to collect only 2 per cent, as tax on the value of the gunny bags-the same rate of tax he can collect on the copra. In the circumstances, we do not pass any order regarding costs.


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