TMI Blog1970 (2) TMI 102X X X X Extracts X X X X X X X X Extracts X X X X ..... sells gudaku. The containers are purchased from outside. The cost price of the containers is included in the cost price of the gudaku. On this an enquiry was made by the Tribunal and it recorded the following findings as being the admitted facts. They are: (i) The purchase price of the container is taken into consideration in fixing the sale price of the contained article, namely gudaku. Thus, admittedly the container is not made a free gift. The dealer does not bear any loss on account of the containers as he does not make a free gift of it. While fixing the price of manufactured gudaku the price of the container is taken into consideration along with other materials. (ii) Though the purchase price of the containers is taken into consi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... intention to sell either express or implied; title to the goods should pass; the goods should be identical with the goods in respect of which agreement to sell had taken place; and transfer of property must be for consideration. In this case, there is no dispute that the title in the container passed from the seller to the purchaser and the consideration was in cash. Even if the consideration be one consolidated whole, both for the gudaku and the container, the position would not be affected, as has been held in Commissioner of Taxes, Assam v. Prabhat Marketing Co. Ltd.[1967] 19 S.T.C. 84. 7.. The main question for consideration is whether there was an intention to sell the containers. The onus is on the taxing authorities to establish th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re comparatively of insignificant value, were used only as a convenient vehicle to put the purchasers in possession of the cigarettes sold." 8.. Applying the aforesaid principles to the facts of this case, on the findings recorded, one cannot escape the conclusion that the containers constituted no integral part of the agreement to sell. Whether the gudaku was sold in tins or loose, the sale price was the same. Obviously, nothing extra was charged for the container at the time of the sale of the gudaku. The present case comes within the second part of the dictum, namely, that the containers were of comparatively insignificant value and were used only as a convenient vehicle for putting the purchaser in possession of the gudaku. 9.. On ..... X X X X Extracts X X X X X X X X Extracts X X X X
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