2025-VIL-1311-PAT
  1. Home
  2. 2025-VIL-1311-PAT

VAT High Court Cases

Bihar Finance Act, 1981 - Taxation of Packing Material and Cement - Appellant contended that under the Bihar Finance Act, 1981, the rate of tax on packing materials (gunny bags and HDPE bags) should be 4% and 7% respectively, while the rate on cement should be 11% - The Dept disallowed the appellant's claim for separate taxation and held that the "sale price" on which sales tax is to be levied must be treated as a consolidated amount at 11% irrespective of the separate prices shown in the invoices - Whether the sales tax can be charged separately on packing materials and cement at different rates, or whether the "sale price" on which sales tax is to be levied must be treated as a consolidated amount at 11% - HELD - The levy of sales tax has always been on the sale price of the goods in question and ‘sale price’ has been separately defined in Section 2(u) of the Bihar Finance Act, 1981. As per this provision, the sale price on which tax is liable to be paid is the amount payable to a dealer as valuable consideration in respect of the sale or supply of "goods", which includes cement along with its packing material – The packing of cement in gunny/HDPE bags was carried out by the dealer either at the time of, or prior to, the delivery of the goods. Consequently, there existed an implied agreement of sale to sell the packing material along with the contents therein - The appellant has not placed any factual material on record to show the existence of a separate contract or agreement for the sale of packing materials. Accordingly, the orders of the assessing, appellate and revisional authorities for disallowance of a separate tax on packing materials is in accordance with law and warrant no interference – The appeals are dismissed
Download File

Quick Search

/

Advance Search

GST Resources

/

Gst Rate Finder

Tax Vista

Your Weekly Tax Recap

By Kasi Viswanathan V

Weekly Summary

VIL Video

GSTR-9 & GSTR-9C of FY24-25
By CA Vivek Jalan

Create Account

Security-Code
New Code?

Log In

New User ? Forgot Password ?

Forgot Password

Security-Code
New Code?
Please Note: This facility is only for Subscribing Members.

Email this page

Feedback this page

Schedule a Demo

Schedule a demo to know the features and advantages of VILGST portal. Get to know the tips to find the desired results in faster way.

Caselaw Request Form (CRF)

Didn’t find what you are searching for? No worries, please give us the following details and VIL will email you the desired Caselaws at the earliest:

Security-Code
New Code?