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1964 (11) TMI 65 - SC - VAT and Sales TaxWhether packing is an integral part of the re-drying process? Whether after the re-drying and packing, the tobacco bales are kept in the factory for any length of time to undergo further re-drying process? Whether there is a sale of the packing material by the respondent to its customers? Held that:- Appeal dismissed. In the present case, it must be held on the finding recorded by the High Court, that it was intended by the parties that the "packing material" should form an integral part of the process of re-drying and without the use of the "packing material" re-drying process could not be completed, and that there was no independent contract for sale of "packing material". It is only as an incident of the re-drying process and as a part thereof that the respondent-company has to seal up the package of tobacco, after it emerged from the reconditioning chamber, with a view to protect it against atmospheric action. In the absence of any evidence from which contract to sell "packing material" for a price may be inferred, the use of "packing material" by the respondent- company must be regarded as in execution of the works contract and the fact that the tobacco delivered by the constituent is taken away with the "packing material " will not justify an inference that there was an intention to sell the "packing material".
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