# LT. GOVERNOR OF DELHI & ORS v. M/S. GANESH FLOUR MILLS CO. LTD

- **Citation:** [1973] 3 S.C.R. 211
- **Court:** Supreme Court of India
- **Decided:** 1973-01-09
- **Case number:** Civil Appeal No. 1776 of 1969
- **Bench:** K. S. Hegde, P. Jaganmohan Reddy, H. R. Khanna
- **Source:** https://unisonlegal.in/judgment/supreme-court-of-india/lt-governor-of-delhi-ors-v-m-s-ganesh-flour-mills-co-ltd-5803
- **Pages:** 5

## Headnote

Central Sales Tax Act 1956-S. 8(3)(c)-Respondent <dealing
in
vegetable products applie.d for amendraent of the ~egistration Certifica~l
to in,el.ude Tin plates or tin sheets used for packing.
Whetl1er
l'eipondent can invoke the benefit of the sai.d clause.
The respondent company is a registered dealer unW:r the
Central
Sales Tax Act 1956 and deals mainly with vegetable products. It was
granted the registration certificate under the Central Sales Tax (Regis·
tratiC11> and Turnover) Rules, 1957. In 1958, the respondent applied
to the Sales Tax Officer for amendment of the Registration Certificate
so as to include Tin· plates or Tin-sheets
under
Sub·section (3)
of
Section 8 of the Act on the ground that those goods were used by the
respondent for packing its vegetable products for sale.
The application was rejected by the Sales Toax Offi.ce'r on the ground
that the goods ~o question were "Declared Goods" and therefore, their
purchase on the strength of registration certificate
could
be
allowe~ -
only if they were to be resold in the form in which they had been
purchased. A revision petition against the said drder was dismissed by
the Commissioner. of Sales Tax who he]d that the goods in question \Vere
not containers and that "Tiin Plates", or "Tin Sheets" did not consti·
tute packing
material.
Further
revision filed
before
the · Chief
Commissioner was dismissed. The respondent thereafter, filed an appli·
cation for making a reference to the High Court, but it was rejected
by the Chief Commissioner on the ground of limitation.
The respo,lldent, thereafter, moved the High Court for direction to
th~ Chief
Commissioner to refer the question of la\V to the High
eourt.
Tn
addition, the respondent filed a petition under Art. 226 and 227 of the
Constitution for a direction to the appellants to decide the application
for amendment of the Registration Certificate in accordance
with law.
The High Court allowed the writ petition and held that the words in
Sec. 8(3) ( c) of the Act were wide enoul!h to cover the goods in
question. On appeal to this Court, the appellant raised the following
question : The "Tin Sheets and Tin Plates" are not covered by clause
(c) of Sub-section (3) of Section 8 of the Act, as those goods comtitute
neither "containers nor materials intended for being used fo'r packing
of goods for sale."
Further as tin sheets. and tin plates
cannot
be
used bv the respondent unless they are converted into containers.
the
respondents cannot invoke the benefit of S. 8(3)(c), of the Act.
Dismissing the appeal,
HELD: (i) The materials refeited to in Clause (c) of Sec. 8(3)
according to its plain language, should be such as are
intended
for
packing of goods for sate. Once the intention of using the materials
for packing of goods for sale is proved, the requirements of the Clauo;e
would be satisfied. The fact that tin sheets and tin plates have kl be
~ubje~d by .the responW:nt to the process of cutting, and
mouldino
into tin containers would not take them out of the category of materia1S
intended for being used for the packing of goods 'for sale. The cuttino
.and moulding is essential for putting the tin sheet's and tin plates intO
212
SUP~~ME COURT REPORTS
[1973] 3 .s.c.R.
.shape \vith a view to adapt them fof aCtual user. The process of cutting
and moulding does not alter ·the nature of the materials ·intended for
use in packing the ·goods for sale. It o,lliy facilitates the actual user
(or packing.
[214FGJ
·
(ii} Packing materials aJ'e necessary not only for solid articles, but
also for those in liquid and semi-liquid form. In a society that produces
food-stuffs and manufactured articles . in one locality and use them. in
another, a wrapping or container is necessary during storage, transport
and sale.
[215-B]
-
Encyclopaedia 'of Britannica, Vol. 17 of 1968 Edn. p. 22 referred to,.
, · The functions of a package are ( 1) to contain a corivenient sizej_
unit or amount of a product; l1j to protect it in transit;
(3) to aid
its safe d

## Text

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211
LT. GOVERNOR OF DELHI & ORS.
v.
M/S. GANESH FLOUR MILLS CO. LTD.
January 9, 1973
[K. S. HEGDE, P. JAGANMOHAN REDDY AND H. R. KHANNA., JJ.]
Central Sales Tax Act 1956-S. 8(3)(c)-Respondent <dealing
in
vegetable products applie.d for amendraent of the ~egistration Certifica~l
to in,el.ude Tin plates or tin sheets used for packing.
Whetl1er
l'eipondent can invoke the benefit of the sai.d clause.
The respondent company is a registered dealer unW:r the
Central
Sales Tax Act 1956 and deals mainly with vegetable products. It was
granted the registration certificate under the Central Sales Tax (Regis·
tratiC11> and Turnover) Rules, 1957. In 1958, the respondent applied
to the Sales Tax Officer for amendment of the Registration Certificate
so as to include Tin· plates or Tin-sheets
under
Sub·section (3)
of
Section 8 of the Act on the ground that those goods were used by the
respondent for packing its vegetable products for sale.
The application was rejected by the Sales Toax Offi.ce'r on the ground
that the goods ~o question were "Declared Goods" and therefore, their
purchase on the strength of registration certificate
could
be
allowe~ -
only if they were to be resold in the form in which they had been
purchased. A revision petition against the said drder was dismissed by
the Commissioner. of Sales Tax who he]d that the goods in question \Vere
not containers and that "Tiin Plates", or "Tin Sheets" did not consti·
tute packing
material.
Further
revision filed
before
the · Chief
Commissioner was dismissed. The respondent thereafter, filed an appli·
cation for making a reference to the High Court, but it was rejected
by the Chief Commissioner on the ground of limitation.
The respo,lldent, thereafter, moved the High Court for direction to
th~ Chief
Commissioner to refer the question of la\V to the High
eourt.
Tn
addition, the respondent filed a petition under Art. 226 and 227 of the
Constitution for a direction to the appellants to decide the application
for amendment of the Registration Certificate in accordance
with law.
The High Court allowed the writ petition and held that the words in
Sec. 8(3) ( c) of the Act were wide enoul!h to cover the goods in
question. On appeal to this Court, the appellant raised the following
question : The "Tin Sheets and Tin Plates" are not covered by clause
(c) of Sub-section (3) of Section 8 of the Act, as those goods comtitute
neither "containers nor materials intended for being used fo'r packing
of goods for sale."
Further as tin sheets. and tin plates
cannot
be
used bv the respondent unless they are converted into containers.
the
respondents cannot invoke the benefit of S. 8(3)(c), of the Act.
Dismissing the appeal,
HELD: (i) The materials refeited to in Clause (c) of Sec. 8(3)
according to its plain language, should be such as are
intended
for
packing of goods for sate. Once the intention of using the materials
for packing of goods for sale is proved, the requirements of the Clauo;e
would be satisfied. The fact that tin sheets and tin plates have kl be
~ubje~d by .the responW:nt to the process of cutting, and
mouldino
into tin containers would not take them out of the category of materia1S
intended for being used for the packing of goods 'for sale. The cuttino
.and moulding is essential for putting the tin sheet's and tin plates intO
212
SUP~~ME COURT REPORTS
[1973] 3 .s.c.R.
.shape \vith a view to adapt them fof aCtual user. The process of cutting
and moulding does not alter ·the nature of the materials ·intended for
use in packing the ·goods for sale. It o,lliy facilitates the actual user
(or packing.
[214FGJ
·
(ii} Packing materials aJ'e necessary not only for solid articles, but
also for those in liquid and semi-liquid form. In a society that produces
food-stuffs and manufactured articles . in one locality and use them. in
another, a wrapping or container is necessary during storage, transport
and sale.
[215-B]
-
Encyclopaedia 'of Britannica, Vol. 17 of 1968 Edn. p. 22 referred to,.
, · The functions of a package are ( 1) to contain a corivenient sizej_
unit or amount of a product; l1j to protect it in transit;
(3) to aid
its safe delhrery to the co.nsumer and ( 4) in some cases, to display
the product or promote its sale, or <to act as a dispenser of it. Tue
packing industry has expanded to meet the demands for processed and
pt"eserved foods rather than seasonal crops and
new
materials
are
being used for containers.
In the present case, as the tin-sheets and
ti.rt-plates purchased by the . respondent were intended to be used for
packing of vegetable products sold by the respondent. it is entitled to
im·oke the benefit of Oause (c) of S. 8(3). [215C-D]
CIVIL APPELLATE JURISDICTION : Civil Appeal No. 1776 of
1969.
.
.
·
Appeal by certificate from judgment and order dated May 3,
.1968 of the High Court of Delhi at New Delhi in Civil Writ No.
135-D. of 1960.
-
S. K. Aiyar, S. P. Nayar and R. N. Sachthe:y for the appellants.
Rameshwar Nath for the respondent.
The Judgment oJ' the Court was delivered by
KHANNA, J.
This appeal on certificate by the Lt. Governor
Delhi and two others is directed against the judgment of Delhi
High Court whereby it accepted the petition under article 226 and
227 of the Constitution of India filed by the respondent company
and directed the appellants to decide the respondent's application
for amendment of registration certificate in the light of 'observations made by the court.
·
The respondent company is a registered dealer under the
Central Sales Tax Act, 1956 (hereinafter referred to as the Act)
and deals mainly in vegetable products (vanaspati).
The respondent was granted registration certificate under · the Central
Sales Tax (Registration and Tumo'l'..er) Rules, 1957. On December 11, 1958 the respondent applied to the Sales Tax Officer for
amendment of the registration certificate so as to include therein
i tin plates or tin sheets under sub-section (3) of section 8 of the
Act on the allegation that those goods were used by the respondent for packing its vegetable products for sale. The said appliA
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LT. GOVERNOR v. GANESH MILLS (Khanna, J.)
213
cation was rejected by the Sales Tax Officer on the ground that
the goods in question were declared goods and, as such, their purchase on the strength of registration certificate could be allowed
only if they were to be resold in the form in which they had been
purchased. Revision petition filed by the respondent against the
order of the Sales Tax Officer was dismissed by the Commissioner
of Sales Tax on the ground that tin plates or tin sheets were not
declared goods or goods of special importance. On the other
hand, according to the Commissioner, those goods could fall in
the category mentioned in clause ( c) of sub-section ( 3) of section
8 of the Act provided they were either containers or materials
used for packing of goods for sale.
The Commissioner further
held that the goods in question were not containers as they had to
undergo manufacturing process before they could be used as con·
tainers. The goods were also held not to fall in the second category of being materials used for packing vegetable oil because,
according to him, the word "packing" was invariably used for
holding solid contents.
He, therefore, held that "tin plates" or
"tin sheets" did not constitute packing material. Further revision
filed by the respondent was dismissed by the Chief Commissioner
who agreed with the opinion of the Commissioner. An application
was thereafter filed by the respondent for making a reference to
the Hi1th Court of the question of Jaw arising from the order of
t~e Chief Commissioner.
This application too was rejected by
the Chief Commissioner on the ground of being barred by time.
The respondent thereafter moved the High Court for a direction
to the Chief Commissioner to refer the question of law formulated
by the respondent to the High Court. In addition lb that, the
r~'nondent filed a netition under articles 226 and 227 of the
Constitution of India for a direction to the appellants to decide the
respondent's application for amendment of the registration certificate in accordance with law.
The writ petition was resisted by the appellants.
The High
Court accepted the writ petition and held that the words of clause
( c) of sub-section ( 3) of section 8 of the Act were wide enough
to cover the goods in question. According to the High Court, it
was not necessary that those goods should be capable of being
used directly for the purpose of packing. It was quite enough if
th~ intention of the dealer was to acquire them in order that they
might be used for packing of goods for sale even if in that process
?f ada9ting them for such use, they had to undergo some change
m .shape or form. It was further observed that the respondent's
ob1ect was to convert the tin sheets and tin plates into tin cont~ners with a view that the same might be filled with the vegetable
01! products to be sold to different parties.
Before proceeding further, we may set out sub-section (I)
and clause (c) of sub-section (3) of section 8 of the Act:
214'
SUPREME COURT REPORTS
[1973] 3 s.c.R.
" ( 1) Every dealer, who in the course of inter-State
trade or commerce--
(a) sells to th~ Government any goods; or
(b) sells to a registered dealer other than the Government goods of a description referred to in
sub-section ( 3) ;
shall be liable to pay tax under this Act, which shall
be three per cent of his turnover.
(3) The goods referred to in clause (b) of sub-section
(1)-
(b) •
•
•
•
•
•
' ( c) are containers or other materials specified in the
. certificate of registration of the registered dealer
purchasing the goods, being containers or materials intended for being used for the packing of
goods for sale;
•
•
•
•
*"
Mr. Aiyar on behalf of the appellants has argued tha:t tin
sheets and tin plates are not covered by clause ( c) of sub-section
.t).) of section 8 of the Act reproduced above as those good5 constitute neither containers nor "materials intended for being 11sed
for packing of goods for sale". Mr. Rameshwar Nath on behalf
of the respondent has not disputed that tin sheets and tin plates
do not constitute containers, but, according to him, they fall in the
category of materials intended for being used for packing of goods
for sale. There is, in our opinion, considerable force in this submission of Mr. Rameshwar Nath.
The materials referred to in
clause ( c) according to its plain language should be such as are
intended for being used for the packing of goods for sale. Once
the intention of using the materials for packing of goods for sale
is proved, the requirements of the clause would be satisfied. The
High Court has found that the respondent purchased tin sheets
and tin plates from dealers in Bihar and elsewhere with a view to
convert those sheets and plates into tin containers in order to fill
the same with vegetable oil products for being sold to different
parties. This finding of the High Court has not been questioned
before us. It has, however, been urged on behalf of the appellants
that as tin sheets and tin plates canot be used by the respondent
unless they are converted into containers, the respondent cannot
invoke the benefit of clause ( c) of sub-section ( 3) of section 8
of the Act. We find it difficult to accept this contention. The fact
that tin sheets and tin plates have to be subjected by the respondent
to the process of cutting and moulding inio tin conta~s would
not take them out of the category ef materials intended for being
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215
used for the packing of goods for sale.. The cutting and moulding
is essential for putting the tin sheets and tin plates into shape with
a view to adapt them for actual user. The process of cutting and
mou1ding does not alter the nature of the "materials intended for
being used for packing of goods for sale"; it only facilitates the
actual user for packing.
We are also of the view that packing materials are necessary
not only for solid articles but also for those in liquid and s~
liquid form.
According to observations on page 22 of Encylo·
paedia Britannica, Vol.17, 1968 Edition, in a society that produces foods-stuffs and manufaotured articles in one Jocality and uses
them in another, a wrapping or container is necessary during
storage, transport, and sale. The functions of a package are ; ( 1)
to contain a convenient-sized unit or amount of a product; (2) to
protect it in transit; ( ~) to aid its safe delivery to the consumer;
and ( 4) in some cases to display the product and promote its
sale or to act as a dispenser of it. Orginally instituted to produce
simple coniainers, the packing industry has expanded to meet the
demands for processed and preserved foods, rather than seasonal
crops, and to distribute increased varieties oI manufactured items.
Packing reflects developments in other industries, especially petrochemicals and plastics, whereby new materials and methods of
construction have been provided for containers. It has further
been observed that cans, both tin and aluminium, are now used
for ready-cooked products, brewery products, soft drinks, and
many oils and semisolids.
Where a reclosable pack is needed.
lever-lid or slip-lid cans are used instead of. sealed cans.
As the tin sheets and tin plates purchased by the respondent
were intended to be used for packing of vegetable· products sold
by the respondent, the respondent, in our. opinion, was entitled to
F
invoke the benefit of clause ( c) reproduced above. In the result,
the appeal fails and is dismissed with costs.
s.c.
Appeal dismissed.