O.M.Chandrasekar, Member (J) - (1.) BOTH the review petitions have been filed to review the orders of this Special Tribunal passed in O.P. Nos. 569 and 649 of 2003 dated September 23, 2003 and to amend the same in the light of the materials produced that the paper tubes and cones are packing materials.
(2.) I heard the arguments of both the sides and perused the connected records. The learned counsel for the petitioners argued that the dispute in the original petitions was as to whether the paper cones and tubes could be treated as packing material, as claimed by the petitioner or as textile machinery parts, as viewed by the authorities. But, in the order under review, this Special Tribunal has held that the paper cones and tubes are neither "parts and accessories" of textile machinery nor a packing material, but classified the same as "any goods" used in connection with manufacture of yarn. Hence, the present review petitions to review the said order and amend the same that the paper cones and tubes are packing materials only. For this purpose, the learned counsel for the petitioners produced before me the relevant copies of Indian Standard Institution Booklet and the American Cotton Hand Book to show that the winding process of yarn on the cones and tubes are referred to as packaging and the wound yarn with such paper cones and tubes are called as packages. The learned counsel also relied on the judgment of the High Court of Rajasthan in the case of Udaipur Distillery Co. Ltd. v. Rajasthan Taxation Tribunal reported in [2003] 132 STC 489 at 496. To a notice issued to the respondents, the learned Senior Standing Counsel appeared and contended that the clarification given by this Special Tribunal in the original petition is correct. I referred to the material papers relied on by the petitioners and the decisions in Udaipur Distillery Co. Ltd. v. Rajasthan Taxation Tribunal [2003] 132 STC 489. In the said decision at page 496, the term "pack" and "packing" was held to include not only the activity of wrapping or encasing or containing in goods not only for storage and transportation, but also the activity of placing the commodity in a container or wrapper for the purpose of sale and preservation. Inasmuch as the winding process of yarn on cones and tubes are described as packaging in the spinning industry and the paper cone and tube contains the main commodity "yarn" on it in a wounded shape, for the purpose of sale, I have no hesitation to apply the said decision to the present cases also. Therefore, following the decision in Udaipur Distillery Co. Ltd. v. Rajasthan Taxation Tribunal [2003] 132 STC 489, I hold that the observations and classification of the product, paper cones and tubes in the order under review, as falling under the caption "any goods" used in connection with manufacture under Section 3(3) of the Tamil Nadu General Sales Tax Act, 1959, shall be ignored and the "paper cones and tubes" shall be treated as packing material only. I make it clear that this order shall be deemed to have been made in the above original petitions with full knowledge of the parties. In this view of the matter, the review petitions are ordered as above. And this Tribunal doth further order that this order on being produced be punctually observed and carried into execution by all concerned. Issued under my hand and the seal of this Tribunal on the 17th day of December, 2003.;