PREMIER BREWERIES vs STATE OF KERALA

The Supreme Court ruled that under Section 5(5) of the Kerala General Sales Tax Act, 1963, the tax rate applicable to packing materials, such as cardboard cartons, must align with the tax rate for the goods they contain, in this case, liquor. The Court upheld the Deputy Commissioner's decision to include the value of the cartons in the turnover for tax assessment, rejecting the appellant's argument that the cartons should be taxed separately at 8%. The Court affirmed the High Court's ruling, concluding that the assessment was correctly revised to reflect the appropriate tax treatment of the cartons.