Supreme Court of India

Commissioner of Trade Tax, U.P. v. Varun Beverages Limited

Neutral citation
Reported as [2011] 4 S.C.R. 803
Bench Dr. Mukundakam Sharma and Anil R. Dave JJ.
Decided 11 April 2011

INSC stands for INDIAN SUPREME COURT. A neutral citation scheme assigned by the Court itself, so a judgment can be cited without depending on a commercial law reporter. INSC is the neutral citation scheme assigned by the Supreme Court, so a judgment can be cited without depending on a commercial law reporter.

What the Court ordered

We hold that so far bottles are concerned, they are essential part of components and equipments necessary for the running of the factory and therefore such value of the investment would form part of the fixed capital investment and would be entitled to F exemption as provided for.

Judgment, page 13

From the headnote

Uttar Pradesh Trade Tax Act, 1948: s.4- (4) - Fixed capital investment - Bottles and crates used by the respondent in its factory for the manufacture of soft drinks and beverages - Inclusion of value of bottles and crates in the i'ixed capital investment ::... Held: Bottles are essential part of components and equipments necessary for the running of the factory of the respondent and; therefore, its value would form part of the fixed capital investment and would be entitled to exemption - Crates are used only for the purpose of marketing and their use is necessary only for taking out the

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