MULJI RATANSHI AND COMPANY Vs. STATE OF KERALA

JUDGEMENT

(1.) THE question we have to decide in this case is, whether the gunny bags, in the case of a sale of copra packed in gunny bags, can be treated as a commodity on which the parties had a different contract. THE principle laid down by the Supreme Court in such cases is found in Commissioner of Taxes, Assam v. Prabhat Marketing Co. Ltd. ([1967] 19 S. T. C. 84 (S. C. ).) and M. A. Razack & Company v. THE State of Madras ([1967] 19 S. T. C. 135 (S. C. ). ). We are of opinion that in the case before us the price of the bags in which the copra was packed and sold in insignificant compared to the price of the copra itself. THErefore, the principle laid down by the Supreme Court applies to the case. THE result is that the revision case is allowed. THE Sales Tax Officer will be entitled to collect only 2 per cent. as tax on the value of the gunny bags - the same rate of tax he can collect on the copra. In the circumstances, we do not pass any order regarding costs. Petition allowed. .