BHAGWANDAS SHOBHALAL JAIN Vs. COMMISSIONER OF SALES TAX

JUDGEMENT

(1.) THIS Judgment shall also govern the disposal of Misc. Civil Case Nos. 148 to 154 of 1972 in each of which the parties are the same. The Board of Revenue, Madhya Pradesh, Gwalior, has under Section 44 of the Madhya Pradesh General Sales Tax Act, 1958, referred the following questions for the decision of this court:

(2.) THE periods of assessment covered in all these cases is Diwali 1965-66, 1966-67 and 1967-68. The assessee was assessed both under the Madhya Pradesh General Sales Tax Act, 1958, as also under the Central Sales Tax Act, 1956, for each of these years. Besides this, for the year 1967-68, two separate reference applications (annexures U and V) were subsequently submitted on 17th June, 1971, on behalf of the Commissioner of Sales Tax whereby it was prayed to refer yet one more question as to "whether hessian cloth is exempt from tax". Accordingly, the Tribunal for the reasons given in paragraph 10 of the reference order has referred the aforesaid question No. (2) also. The Board of Revenue has sent a common statement of case.

(3.) THE Board of Revenue by order dated 13th May, 1970 (annexure D), decided the two second appeals preferred by the assessee which relate to the assessment period 1965-66. In this order, the learned Member, Board of Revenue, found as follows : It is true that in the bills of sale of bidis by the appellant, the selling rate is quoted in terms of thousands of bidis and the price of packing material has not been separately and expressly charged. But from the trading account, it is disclosed that the price of hessian, bardana and crates and other packing materials are taken into account in fixing the price of the bidis. It is also admitted by the appellant that the bidis had to be supplied to the purchaser duly packed in crates. The purchasers will not pay the price of bidis as settled if they were supplied loose or without packing material. It is, therefore, clear that the sale of packing material along with the bidis was implied in the contract of sale. It is also admitted that the property in the packing material, i. e. , hessian and bamboo frame, etc. , passed from the assessee to the purchasers. The point regarding the in-significant price of the packing material does not affect the main issue on considerations discussed above. Besides, the price of Rs. 4 per crate containing bidis worth about Rs. 500 cannot be said to be insignificant altogether, particularly when it had resale value, the price of which may vary from Rs. 2 to Rs. 3 per crate. I have, therefore, no reason to differ from the decision already taken by this Tribunal on this point in the earlier case of the same assessee. No other point was pressed by the appellant.