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2006 (1) TMI 244 - SC - VAT and Sales TaxWhether the sale price of cement includes the cost of packing materials? Held that:- Appeal dismissed. The gunny bag or the HDPE bag is used to facilitate the transporting and marketing. The value of bag would normally be a minor percentage of the value of cement. In such a situation, it would be difficult to infer a separate agreement for the sale of bags used for packing the cement. The High Court was right in observing that the manufacturers, in order to claim the tax benefit had resorted to the modus operandi of the sale of containers (bags) by bifurcating the price.
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