Honble BALIA, J.–Heard learned counsel for the petitioner. (2). No one appeared for the respondent in spite of service. (3). The petitioner Assistant Commissioner. Commercial Taxes Department, Sirohi challenges the order passed by the Rajasthan Tax Board, Ajmer on 8.12.98 in Appeal No. 781/96, by which the appeal of the revenue has been rejected against the order of Deputy Commissioner (Appeals), Commercial Taxes by which the levy of tax and interest on the value of packing material packed in which the goods manufactured by the petitioner were sold was set aside, and notice of demand for that amount has been quashed. (4). The respondent assessee had set up a new industrial unit for manufacture of Granite Tiles. The new unit was exempted from payment of tax on the goods manufactured by it under the Sales Tax Incentive Scheme in 1987. Under the aforesaid scheme the entire turn over of Granite tiles, after allowing eligible deduction was subjected to assessment and amount of tax payable on the such turn over was adjusted against the limit of maximum quantum of tax benefit enjoyable by the unit under the aforesaid incentive scheme. However, the assessing officer was of the view that since only the sale of goods manufactured by the new unit was exempted and there was no exemption of sale of packing material, which was not manufactured by the new unit, but has been purchased by assessee as a exempted goods, is subject to tax under the last proviso of Section 5(1) of the Rajasthan Sales Tax Act, 1954 at the same rate at which the goods manufactured by it has been sold. He accordingly levied tax on the amount of turnover attributable to sale of packing material and also levied interest thereon. This order was challenged by way of appeal before the Deputy Commissioner. The Deputy Commissioner (Appeal) found that no separate sale of packing material in isolation has been made but was inseperable from sale of tiles. Full consideration of the tiles manufactured by the new unit has been subjected to assessment of tax. The assessee, though has been exempted from payment of tax under the scheme, but is not exempted from assessment in respect of sale of manufactured goods. In view of this, neither the additional tax was leviable nor interest thereon was recoverable. Full consideration of the tiles manufactured by the new unit has been subjected to assessment of tax. The assessee, though has been exempted from payment of tax under the scheme, but is not exempted from assessment in respect of sale of manufactured goods. In view of this, neither the additional tax was leviable nor interest thereon was recoverable. The said order of the Deputy Commissioner (Appeals) has been affirmed by the Rajasthan Sales Tax Board. (5). Mr. Johari learned counsel for the revenue urged that under the Incentive Scheme only the sale of goods manufactured by the new unit has been exempted u/s. 4 of the Act and therefore in view of the provisions of Section 5 prescribing rate of taxation, the packing material in which manufactured goods have been sold is liable to be taxed independently and therefore the assessee is liable to pay tax on sale of packing material which he had purchased without payment of tax. (6). Having carefully considered the contention raised by the learned counsel and perused the provisions of the statute and heard. I am unable to reach the same conclusion as suggested by learned counsel. The relevant part of Section 5 reads as under:- ``Section 5 (1) : The tax payable by a dealer under this Act shall be at such single point in the series of sales by successive dealers as may be prescribed and shall be levied at such rate not exceeding 75% on the taxable turnover, as may be notified by the State Government in the official Gazette. xxxxxxxxxxxxxx xxxxxxxxxxxxxx Provided also that when any goods are sold, packed in any material, the tax shall be leviable on the sale of such packing material, whether charged separately or not, at the same rate as is applicable to the sale of the goods themselves; and if the goods are exempted from tax under section 4 or have already been subjected to tax under the Act, then at the rate notified for such packing material from time to time. (7). Another relevant provisions that need be noticed is definitions of `turn over and `taxable turn over. (8). According to Section 2 (t) : ``turnover means the aggregate amount of sale prices received or receivable for a sale, transfer, delivery or supply by a dealer in any of the ways referred to in clause (O). (7). Another relevant provisions that need be noticed is definitions of `turn over and `taxable turn over. (8). According to Section 2 (t) : ``turnover means the aggregate amount of sale prices received or receivable for a sale, transfer, delivery or supply by a dealer in any of the ways referred to in clause (O). Explanation-Subject to such conditions and restrictions ; if any, as may be prescribed in this (i) xxxxxxxxxxxxxx (ii) the amount for which goods are sold or supplied shall include any sum charged for anything done by the dealer in respect of the goods sold at the time of or before the delivery thereof (9). Section 2 (s) defining taxable turnover reads as under:- Section 2 (s) : ``taxable turnover means that part of turnover which remains after deducting therefrom the aggregate amount of the proceeds of sale of (i) on which no tax is leviable under this Act, (ii) which have already been subjected to tax under this Act. (iii) which have been sold to persons outside the State for consumption outside the State; and (iv) which are taxable at a point of time sale within the State subsequent to the sale by the dealer and such sale is covered by a declaration as may be required under any provision of this Act or the rules made thereunder; Provided that where a dealer in goods which are exempted from tax unconditionally, selles any bardana, container or any other packing material received along with such goods at the time of purchase thereof by him, the taxable turnover in respect of such sales shall, at the option of such dealer to be exercised in the prescribed manner, be one percent of the aggregate amount of the sale prices received or receivable by him in respect of the sale or supply of such goods and of such goods and of such bardana container or material; Provided further that when any dealer has purchased any goods without paying any tax or after paying tax at concessional or reduced rate of tax on the strength of any declaration furnished by him under the Act and such goods are used by him for any purpose other than the one mentioned in the declaration, the purchase price of such goods shall be included in his taxable turnover subject to the tax already paid by him. (10). (10). The scheme of the aforesaid provisions makes it abundantly clear that proviso to Section 5(1) referred to above indicates clearly the legislative policy that where goods are sold in packed in any material, it is to be treated as one composite sale of the commodity packed in packing material and the consideration received or receivable, commodity and packing material is not to be segregated by dividing into two sales. This is so even if a dealer charges separate price for the goods sold and of the material in which it is packed. Such a practice by a dealer will not result in treating a composite sale in two separate sale transactions-one for sale of principal commodity and another of packing material. That is made clear by use of the expression that tax shall be leviable on the sale of such packing material whether charged separately or not at the same rate as applicable to the sale of goods themselves. Where the packing material has not been charged separately, the question of separating the sale price of such commodity from that of simply packing material does not arise and entire sale price has to be taxed, after eligible deductions, at the rate applicable to the commodity sold and separate rate cannot be charged on the considered attributable to sale of packing material by treating it as a separate sale. Nor the dealer can claim so, by claiming deduction of the cost of packing material on any ground whatsoever. If the price of commodity and raw-material has been charged separately by the dealer yet the same cannot be treated as two independent sales so as to subject to different rate of tax on such one integrated sale of commodity packed in packing material. The price of the commodity and packing material has been taken together for the purpose of determining the `turn over and `taxable turn over for levy of tax on such sale transaction. The provision of Section 2(s) of 1954 Act further makes it clear, which was in force at the relevant time. Where the commodity is not to be subjected to tax under the Act, turnover in respect of it has to be deducted from gross turnover U/s. 2(s) of the purpose of determining the taxable turn over. The provision of Section 2(s) of 1954 Act further makes it clear, which was in force at the relevant time. Where the commodity is not to be subjected to tax under the Act, turnover in respect of it has to be deducted from gross turnover U/s. 2(s) of the purpose of determining the taxable turn over. Where turn over in respect of goods sold is exempted it is to be deducted from taxable turn over, perhaps in that event price of packing material is to be segregated for the purpose of levy of tax under later part of proviso to Sec. 5(1). However in the present case commodity sold is not one on the sale proceeds of which no tax is leviable. (11). The incentive scheme does not say that tax is not leviable on the goods manufactured by a new unit. In fact it exempts the person, and not commodity, from payment of tax, which is leviable on sale of commodity manufactured by it to a maximum limit determined under the various provision of the scheme within the period prescribed for reaching such limit. A dealer can neither claim exemption from payment, of tax leviable on sale of commodity on reaching maximum limit of exemption, thereafter even during operative period of his eligibility certificate, nor he can claim such exemption even upto maximum limit prescribed beyond the such operative period of eligibility certificate. In all events turnover of such commodity as is manufactured by him is liable to be subjected to regular assessment, and no deduction in respect of such turnover is permissible u/s. 2(s). Tax in respect of such turnover is to be determined, according to provisions of Act and such liability in respect of such taxable turnover is to be adjusted against the limit of exemption from payment of tax enjoyable by the assessee dealer. Incentive operates in respect of person by way of exempting him from payment of tax. Tax in respect of such turnover is to be determined, according to provisions of Act and such liability in respect of such taxable turnover is to be adjusted against the limit of exemption from payment of tax enjoyable by the assessee dealer. Incentive operates in respect of person by way of exempting him from payment of tax. Even where the price of packing material and commodity has been segregated and to be charged to tax in accordance with law at the rate at which packing material is subjected to tax, in that event also after segregating the turn over of packing material the taxable turn over in respect of packing material to be computed u/s. 2(s), which requires from it a deduction of such amount which has already been subjected to tax under the Act. (12). Obviously there is no segregated sale of packing material and commodity itself, which was not exempted from tax. The proviso is clear in its tenor inasmuch as the entire turn over of the commodity is subjected to tax at the rate at which sale of commodity is to be taxed and the turn over of the commodity is computed in accordance with provisions of the Act. In the present case it is finding that there is no separate sale of the packing material but the value of packing material used in respect of commodity sold is segregated by treating the commodity to be exempted from tax. Question, therefore, is to be seen, whether sale of commodity is exempted or not. If the sale of commodity is exempt then obviously the assessee may be liable to pay tax in respect of packing material indepenently. On the sale of packing material under the aforesaid proviso. (13). The Section 4 of the Act reads as under: (1) No tax shall be payable under this Act on the (sale or purchase) of any of the exempted goods if the conditions specified in column 3 of the Schedule are satisfied. On the sale of packing material under the aforesaid proviso. (13). The Section 4 of the Act reads as under: (1) No tax shall be payable under this Act on the (sale or purchase) of any of the exempted goods if the conditions specified in column 3 of the Schedule are satisfied. (2) Where the State Government is of the opinion that it is necessary or expedient in the public interest so to do, the State Government may, by notification in the official gazette, (exempt whether prospectively or retrospectively) from tax the (sale or purchase) of any goods or class of goods or any person or class of persons on such conditions and on payment of such fee as may be specified in the notification. (3) The Excise and Taxation Department No.F. 5(39) E & T/57, dated the 11th day of August, 1959 published in Rajasthan Rajpatra, Part IV C, dated the 15.10.1959 issued under sub-section (2) shall be deemed to have been rescinded with effect on and from the 11th day of August, 1959 and notwithstanding such rescission, sale of old gunny bags during the period commencing on the 11th day of August, 1959, and ending on the 20th day of February, 1968 shall be deemed to have been exempted from payment of tax. (14). A perusal of Section 4 goes to show that firstly under sub-Sec. (i) it envisages exemption of a list of exempted goods listed in the schedule, obviously packing material and commodity is not exempted under sub-Sec. (i) of Sec. 4. Sub-sec. 2 of Section 4 envisages that State Govt. may by notification in the official gazette, exempt whether prospectively or retrospectively from the tax (1) the sale or purchase of any goods or class of goods or (2) any person or class of persons, on such conditions and on payment of such fee as may be specified in the notification. (15). Obviously it is not the case of the revenue that sale or purchase of commodity in question itself has been exempted from tax u/s. 4(2). Neither the scheme of Sales Tax of 1987 itself envisages such exemption. The notification of Incentive Scheme reads: The State Government hereby notifies the ``Sales Tax Incentive Scheme for Industries, 1987 and exempts the industrial units from payment of tax on the sales of the goods manufactured by them within the State. Neither the scheme of Sales Tax of 1987 itself envisages such exemption. The notification of Incentive Scheme reads: The State Government hereby notifies the ``Sales Tax Incentive Scheme for Industries, 1987 and exempts the industrial units from payment of tax on the sales of the goods manufactured by them within the State. Likewise the Sales Tax Incentive Scheme under the Central Sales Tax Act also envisaged: The State Government hereby notifies the Sales tax Incentive Scheme for Industries, 1987 and exempts the industrial units from payment of tax on the sales made in the course inter-State trade or commerce, of the goods manufactured by them within the State. The scheme envisaged exemption of the industrial units from the payment of tax which is leviable on the sale of goods manufactured by the new industrial unit within the State. Where such sale is within State, exempts from payment of tax on or sale in the course of inter-State, trade or commerce. The exemption is to be the new industrial units in respect of sale of goods manufactured by it within the State. But there is no exemption to sale of commodity in State itself. For, the payment of tax is directly linked with the maximum quantum of exemption computed under the scheme. It is to be seen that commodity has not been exempted from levy of tax nor the industrial unit is fully exempted from tax. The tax leviable on sale transaction carried on by the new industrial unit has to be assessed as such and then the unit concerned only is granted exemption from payment of such tax until he exhausts exemption in limit. (16). I am therefore, of the opinion that exemption under the Incentive Scheme is not to the commodity. It cannot be said that the sale of goods itself is exempted from levy and assessment of tax. That being so for periods in question the turn over of the assessee who only is exempted from payment of tax to limited extent under the Incentive Scheme, which is otherwise leviable on such turn-over by him has to be subjected to regular assessment and levy. After levy it is to be adjusted against the exemption limit to be availed by the unit. After levy it is to be adjusted against the exemption limit to be availed by the unit. Viewed from that point of view, the respondent in the present case has been subjected to levy and assessment of tax, on the total turn over of the sale of goods manufactured by him without making any deduction on account of value of material, packed in which commodity has been sold. The entire sum of consideration charged by the respondent on the sale of commodity in packed condition, without charging any separate price for packing material or claiming deduction on that count from the turn over has been subjected to tax and said sum has been adjusted in reducing the balance of incentive limit remaining available. Thus the sale of the commodity in question which is manufactured by the assessee has been subjected to tax. The respondent is entitled to avail exemption from payment of such tax liability until such levy reaches the eligible maximum limit. No separate and independent liability by notionally segregating the value of packing material from the entire turn over has been or can be determined against him so as to reduce the eligible tax liability to be adjusted against exemption limit. The entire turn over of the commodity has already been subjected to assessment at the same rate at which tax is leviable on goods sold. Tax payable on such turn over has been adjusted against the exemption limit enjoyable by the assessee. There is no warrant for levy of further tax by further increasing an amount of turn over in addition to the total sale price received by the assessee. Even the proviso to Sec. 5(1) does not envisage any notional addition to sale price in the name of separately levying tax on packing material. It only envisages, as noticed above, to tax the full consideration of commodity including the price of packing material at one uniform rate. If no separate price is charged then entire price charged is to be taxed at same rate at which commodity sold is to be taxed without deducting it by the sum attributable to price of packing material. Where separate price is charged in respect of a commodity sold in packed condition, for the commodity and packing material, both are to be clubbed to be taxed at one rate. Where separate price is charged in respect of a commodity sold in packed condition, for the commodity and packing material, both are to be clubbed to be taxed at one rate. It is only where commodity is exempted from payment of tax that the sale price of packing material is to be segregated and taxed independently as sale of packing material only, at the rate applicable to packing material. The last situation does not arise in present case. As the consideration of sale of commodity included value of packing material used by him. No provision has been pointed out that once the entire price of the commodity sold in packed condition has been brought to tax, then a further addition in turnover on account of value of packing material can be made even if the same has not been separately charged and has already been included in the taxable turn over. That would result in levy of tax doubt taxation on some turn over which cannot be countenanced. (17). There is yet another aspect from which the question can be seen. It is the finding of the assessing officer himself that the assessee has purchased the packing material from dealer who was also enjoying the benefit of the Incentive Scheme as a new industrial unit. Consequence to that on sale of packing material the seller has been assessed on such turnover to the extent of tax payable by him thereon, has enjoyed the exemption from payment of tax and the tax amount determined on such turn over has been charged against limit of exemption. Thus the admissible limit of tax exemption of seller dealer has been reduced. In other works tax on the commodity has been effectively levied and accounted for. It must be held that the commodity purchased by the assessee has already been taxed, though the seller has been exempted from payment of such tax on account of incentive scheme. This being the position the same cannot be taxed again in the hands of purchasing dealer for the purpose of recovering the same tax, which has been exempted from recovery in the hands of manufactures. The incentive scheme is not intended to transfer the liability of payment of tax in respect of which the eligible unit is entitled to enjoy and has enjoyed, benefit of adjustment to permissible limit, to the purchaser. The incentive scheme is not intended to transfer the liability of payment of tax in respect of which the eligible unit is entitled to enjoy and has enjoyed, benefit of adjustment to permissible limit, to the purchaser. That being so notwithstanding the turn over of packing material may be segregated from the turn over of the commodity sold, in view of the provisions of Section 2 (s) the turnover of tax paid goods will have to be deducted. No separate tax can be levied on the packing material in the hands of the present respondent. (18). Thus viewed from any angle the order of the assessing officer for levy of separate tax on packing material and charging interest thereon raising a demand thereof, without there being the separate sale of packing material, independent of turn over of the commodity sold in packed condition, is not sustainable and the appellate authorities were right in their conclusion that such levy of tax and interest is not sustainable. (19). This revision petition fails and is hereby dismissed. There shall be no order as to costs.