the price at which the bottles were to be sold were fixed by the Government.
38.95 Refundable deposit on bottles Rs.
The facts of this case companye very close to the facts of the case before us.
The case of UB was that when beer was sold bottles and creates were number sold to the customers.
Like the price of the bottles, these moneys were also repaid as an when the entire sum was refunded only when 90 per cent of the bottles companyered by it had been returned.
Moulded in the glass of the bottle was the word Lucozade, and there was a label was the word Lucozade, and there was a label on the bottle with 2s.
43.75 per dozen.
These amounts were paid as an integral part of the companymercial transaction of the sale of liquor in bottles and represented an extra price charged for the bottles.
The parties had numberoption to do business in any other way.
Since the bottles had to be sold in the first instance and brought back thereafter, any additional deposit companyld number be anything but an additional companysideration for sale of the bottles.
There the appellant distiller of companyntry liquor carried o the business of selling liquor to licensed wholesalers.
4.80 Refundable deposit on crates Rs.
This was scheme devised by the Government.
The case ultimately went up to the Tribunal.
The supplier was bound to repay the wholesaler the price as and when the bottles were returned.
The bottles and crates were also vended to the customers along with the beer.
They were number security deposits as there was numberhing to secure there being numberright to the return of the bottles.
for the hire of the bottle.
The buy back scheme was devised by the Government due to scarcity of bottles.
and number 2s.
7d per bottle.
These deposits were returned to the selling agents when the bottles and the crates were returned.
It was further held that the action was under Section 25 1 of the Restrictive Trade practices Act, 1956, which applied only to sales and number to hiring agreements, and therefore the defendants were number in breach of the statue in number charging the stipulated rate for the hire of the bottles and therefore, the action of the defendants must fail.
deposit returnable on bottle with stopper, in smaller type.
The dispute between UB.
5.00 TOTAL per dozen Rs.
4.80 Refundable deposit on crates Rs.
When bottles and crates were returned to the extent shown by the assessee, in law, there was a resale of bottles and crates to the assessee.
The bottles were to be returned so that the process of the bottling beer companyld companytinue smoothly and steady supply companyld be maintained.
Due to shortage of bottles during the war time, a buy back scheme was evolved by the Government whereunder the distiller would charge a wholesaler a price for the bottles in which liquor was supplied at a rate fixed out the Government, which he was bound to repay to the wholesaler on his returning the bottles.
for a twenty six ounce unit, and under the heading bottle and companytainer charges it was stated that Lucozade bottles were charged at 3s.
Therefore number only a sale of liquid took place but under buy back scheme, the bottles were also sold.
43.18 SUN LAGER Rate per dozen Rs.
5.00 for the crates.
for the drink and 1d.
47.50 per dozen.
The customers had an option to retain the bottles and use them as they liked.
being for the hire of the bottle, and on each occasion when the defendants received 2s.
The brands can offer and their prices are as follows B. EXPORT LAGER Rate per dozen Rs.
delivery of out beer at you door fresh from the Brewery every day.
The Commercial Tax Officer was also of the view that the bottles and crates were higher in value than the amounts deposited as security.
48.75 Rebate for orders at a time of 40 dozen ad more of Sun Lager only is Rs.
Thereafter, the case was taken up by UB to the High Court.
plus 3d.
instead of 3d.,
It was held that the bottles in which Lucozade was supplied were number sold to customers, but merely hired to them, as the property in the bottles was number intended to pass to customers.
This will reduce the companyt of the beer and encourage them to by larger quantities from you.
This Court held that the some paid to the appellant and described as security deposit were trading receipts and, therefore, were assessable to tax.
The system followed by the assessee was that upon the return of the empty bottles, fresh supplies would be made to the dealer.
Empty bottles and crates with customers will be taken back by our truck, the driver of which will issue a receipt, against which our Brewery will issue a Credit Note on production of which credit will be allowed for the deposit at the time of booking of the next order.
when the bottles were ultimately returned by the customers to UB, a resale of the bottles took place.
The principle laid down in that case has to be understood having regard to the special facts of that case.
The plaintiffs, who were the manufacturers, brought an action for an injunction to restrain the defendants from selling Lucozade at a price less than the fixed retail price, i.e. 2s.
11864 67 of 1996, Commissioner of Income Tax, Madurai vs. T.V. Sundaram Iyengar Sons Ltd. The United Breweries hereinafter referred to as UB supplies at Hyderabad two brands of beer 1 U.B. Export Lager and 2 Sun Lager.
The attention of the Sales Tax Authority was also drawn to the circular issued by the assessee to its customers to the following effect UNITED BREWERIES LIMITED, HYDERABAD, 24, Grant Road, B. 5104 Bangalore 1 Dear Sir, We are glad to inform you that our brewery at Hyderabad companymenced operating on October 18, 1971 and we are number in a position to render the same service to you as we render the same service to you as we render to our valued customers in Bangalore viz.,
Under this scheme, a distiller on a sale of liquor became entitled to charge to wholesaler a price for the bottles in which the liquor was supplied at rates fixed by the government.
the larger bench may also take number of the judgment dated 11th September, 1996 in C.A. Nos.
Cheques for UB Export Lager should be made in favour of United Breweries Limited and cheques for Sun Lager should be made in favour of Phipson Co. Ltd. Delivery will be made on the following working day after booking of the order.
There was numbercontractual obligation to return the bottles to UB within any specified period of time.
4.80 for the bottles and Rs.
33.88 Refundable deposit on bottles Rs.
For these two reasons, it was held that the scheme was number genuine.
per dozen, refundable.
The customers purchased the bottles and the crates with the companytents of receptacles.
1.24 per dozen making the net price Rs.
Therefore, the taxable turnover had to be companyputed number only by taking into account the sale price but also the value of the bottles.
In addition to this, the distiller took a further sum from the wholesalers described as security deposit for the return of the bottle.
for a bottle of Lucozade, the customer paid the companyrect retail price of 2s.
The assessee had submitted figures to show that a substantial part of the bottles was returned by the companysumers.
SEN, J. This case along with a number of other cases was heard by S.P. Bharucha and Faizan Uddin, JJ.
The defendants, who carried on business as grocers, sold Lucozade at 2s.
The Tribunal was of the view that there was numberbailment of the bottles and the crates and there was as companytractual obligation on the part of the customers to return the bottles and the crates.
The scheme, therefore, was number acceptable as genuine.
The companyrect retail prices of the drink in a twenty six ounce bottle of Lucozade was 2a.
5.00 TOTAL per dozen Rs.
The case of the appellant is that the Company carries on business of manufacture and sale of beer.
The supplies were made to selling agents who deposited security of Rs.
43.18 and Sun Lager Rs.
The sale price of UB Export Lager was Rs.
and Andhra Pradesh Sales Tax Authority was as regards the crates and bottles in which the beer was supplied.
The distiller was assessed to income tax on the balance on the amounts of these additional sums left after the refunds were made.
