GANGESHWAR LIMITED Vs. STATE OF UTTAR PRADESH

JUDGEMENT

(1.) By this writ petition, petitioner has challenged the order dated 22.3.1991, passed by the Assistant Commissioner (Assessment), Sales Tax, Saharanpur, imposing sales tax on gunny bags used by it in packing of sugar for the purpose of its storage and sale.

(2.) Learned Counsel for the petitioner has stated that the controversy involved in this petition has already been decided by Lucknow Bench of this Court in Oudh Sugar Mills Ltd. v. State of U.P. and Ors. reported in 1995 UPTC 723. Writ Petition No. 3270 (MB) of 1992, decided on March 22, 1995, a copy of which has been placed before us. Learned Standing Counsel has, however, stated that the controversy involved in the instant case is not covered by the decision in the case of Oudh Sugar Mills Ltd. v. State of U.P. and Ors. (supra). In this connection it has been contended by him that as in the instant case a finding of implied contract of sales of gunny bags with sugar has been recorded, no exception can be taken to the impugned order.

(3.) It is true that a finding to that effect has been recorded by the Assessing Officer, but it is based on assumption that the price of gunny bags is included in the price of the sugar. It is a question of fact and has to be decided on the basis of the material on record. Such an assumption cannot be warranted, because the price of the sugar is fixed by the Central Government in exercise of statutory power. There is nothing on the record to show that while fixing the price of sugar, price of gunny bags was also taken into consideration. The instant case is fully covered by the decision in the case of Oudh Sugar Mills Ltd. v. State of U. P. and Ors. (supra).