TMI Blog1987 (4) TMI 441X X X X Extracts X X X X X X X X Extracts X X X X ..... higher price over and above what has been provided for ordinary containers is permitted. - C.A. 103 OF 1975 - - - Dated:- 16-4-1987 - PATHAK R.S.,AND RANGANATH MISRA JJ. S.K. Dhingra and K.B. Rohtagi, Advocates, for the appellant. D.N. Goburdhan and D. Goburdhan, Advocates, for the respondent. -------------------------------------------------- The judgment of the Court was delivered by RANGANATH MISRA, J.- This appeal is by special leave. Challenge herein is to the decision of the Patna High Court rendered on a reference under section 33(1) of the Bihar Sales Tax Act, 1959. The following question was referred to the High Court for its opinion, by the Commercial Taxes Tribunal of Bihar: "Whether, in the f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r the containers. The Tribunal found: "(1) The dealer transferred the property in the gunny bags, the packing material, to the purchasers for price. (2) The price of the gunny bags was included in the consolidated rates of price charged by the dealer. (3) There was an implied agreement for the sale of gunny bags between the dealer and the different purchasers to whom the wheat products were supplied. (4) The transfer of gunny bags was impliedly covered by the contract of sale with regard to the wheat products." On these findings the Tribunal held: "We hold that the learned lower courts were justified in levying tax at a different rate on the turnover on account of sale of gunny bags in which the wheat products were sold." It f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... here wheat products are sold in cloth bags in quantities of 40 kgs. net, 20 kgs. net and 10 kgs. net, a sum of 70 np., 37 np. and 19 np. respectively, towards the cost of the cloth bag may be charged in addition to the said prices." In our view, the Tribunal rightly came to the conclusion that there was implied agreement of sale of the gunny bags. Admittedly gunny bags are a different commodity and sale thereof is assessable to tax at 4 per cent. It is not disputed that appellant bought gunny bags for packing wheat products for the purpose of sale. The Control Order contemplates a net weight which means that the weight of the bag is included in the price to be charged by the dealer. Under the explanation when packing is done in cloth bag ..... X X X X Extracts X X X X X X X X Extracts X X X X
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