M/S. BALKRISHNA HATCHERIES vs CLARIFICATION & ADVANCE RULING AUTHORITY

The Supreme Court examined whether dressed chicken sold in polythene bags closed by stapling or crimping constitutes a 'sealed container' under Entry 8(viii) of the Second Schedule of the Karnataka Sales Tax Act, 1957. The Court held that such closures do not render the bags airtight or watertight, thus qualifying for exemption from sales tax. The judgment reversed the Karnataka High Court's ruling, affirming that the appellant's sales are exempt from tax as they do not meet the criteria for sealed containers under the Act.