Chandra Reddy, C.J. - (1.) The point involved in this revision is whether the notification dated 13th December, 1957 (the contents of which will be set out presently) exempting certain goods would take in the packing materials and the containers of those goods.
(2.) The petitioner is a manufacturer of and dealer in cigarettes. He was being assessed to sales-tax on his turnover of the sale of cigarettes upto 13th December, 1957- On 13th December, 1957 tobacco and all its products were exempted from sales-tax, obviously for the reason that additional excise duty was levied on these goods, in addition to several others which need not be enumerated here. Subsequent to 13th December, 1957, cigarettes sold by the petitioner were not subjected to tax. However, the department sought to levy sales-tax on the packing material, packets, as also the dealwood boxes, in which cigarette cartons were packed for purposes of export to places outside Hyderabad. The petitioner objected to the levy of this tax on the ground that the exemption extended to these materials also. This objection did not prevail either with the department or the Sales-tax Appellate Tribunal. In the result, he was directed to pay tax on these materials under section 14 (4) of the Andhra Pradesh General Sales-tax Act (hereinafter referred to as the Act).
(3.) This revision is directed against the decision of the Sales-tax Appellate Tribunal confirming that of the Assistant Commissioner of Commercial Taxes, who in his turn agreed with the Commercial Taxes Officer in regard to the interpretation of the notification in question. This view of the department and of the Appellate Tribunal is impeached by Shri, Venkatappayya Sastry, learned Counsel for the petitioner on the contention that it is in conflict with the scheme of the Act as evidenced by the relevant statutory provisions.;