State of Andhra Pradesh vs Swapna Mahila Co-operative Super Bazar

Syed Shah Mohammed Quadri, J.—The question that arises for consideration in these tax revision cases, filed by the State u/s 22(1) of the Andhra Pradesh General Sales Tax Act, 1957 (for short "the Act"), is :

"Whether the iron trunk box is a ''container'' within the meaning of entry 19 of the Schedule I of the Act ?"

The assessee is a co-operative super bazar. It claimed exemption on the turnover of the iron boxes on the ground that the second sales of iron boxes fall under entry 19 of the Schedule I of the Act. The assessing authority did not agree with this contention and treated the same as general goods which are taxable u/s 5(1) of the Act. That view of the assessing authority was upheld by the appellate authority. But on a further appeal to the Sales Tax Appellate Tribunal, the orders of the assessing authority as well as the appellate authority were set aside and the trunk box is held to be a "container" within the meaning of entry 19 of Schedule I to the Act.

The Government Pleader for Commercial Taxes argues that the order of the Tribunal holding the iron trunk boxes as "containers", is erroneous and he submits that the iron trunk boxes have to be treated as suitcases which are classified as general goods. We are unable to accept the contention of the learned Government Pleader.

Entry 19 is in the following terms : ------------------------------------------------------------------------ S. No. Description of goods Point of levy Rate of tax ------------------------------------------------------------------------ 19 Containers other than gunnies, At the point 5 paise in bottles and plastic containers of first sale the rupee. in the State. ------------------------------------------------------------------------ 4. In G. Claridge and Company Limited Vs. Collector of Central Excise, Pune, , the Supreme Court considered the meaning of the expression "container" for the purpose of classification under the Central Excise Tariff Act. After referring to the meaning of the said expressions given in Websters'' New Collegiate Dictionary (1975) and Chambers'' 20th Century Dictionary, the Supreme Court has observed that a "container" is used in three different senses : viz., (1) in a broad sense, (2) in a narrow sense, and (3) in a more limited sense. In a broad sense, it means a receptacle which contains and in that sense it includes a "tray" because it is a receptacle which contains articles. In the narrow sense, it means receptacle in which articles are covered and enclosed and transported. In a more limited sense, the meaning was given as an enclosure used in shipping or railway for transport of goods. Whether the expression is taken in the narrow sense or broad sense, for the purpose of the above entry, having regard to the context in which the expression is used, in our view, it includes iron trunk boxes because articles are placed in it which are covered or enclosed for the purpose of transportation. In this view of the matter, we confirm the order of the Tribunal and dismiss the tax revision cases but without costs.

Petitions dismissed.