Packing material supplied for selling live honey bee is a part of composite supply

Last updated: 23 October 2024

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Quick Summary

The Madras High Court has ruled that packing material supplied for selling live honey bees should be considered part of a composite supply. This means the packing material is intrinsically linked to the sale of the exempted product, live honey bees. The court set aside the tax demand on the packing material and remanded the case for fresh consideration, acknowledging the prima facie case made by the petitioner.

Court :
Madras High Court

Brief :
The Hon'ble Madras High Court in the case of Tvl. Vibis Natural Bee Farms v. Deputy State Tax Officer-1 [Writ Petition (MD) No.s 17237 to 17240 of 2024 dated July 26, 2024] disposed of the writ petition where the Assessee was engaged in sale of live honey bees and sale of packing material for selling live honey bees was to be treated as part of composite supply with exempted product. Thus, the order passed against the Assessee treating value of packing material as a value of supply demanding tax was to be set aside and matter was to be remanded to pass fresh orders.

Citation :
Writ Petition (MD) No.s 17237 to 17240 of 2024 dated July 26, 2024

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