TMI Blog1979 (11) TMI 239X X X X Extracts X X X X X X X X Extracts X X X X ..... .. The relevant periods of assessment are calendar years 1962, 1963 and 1964. The assessee manufactures and sells superphosphate fertiliser. The fertiliser sold by the assessee is packed in polythene-lined gunny bags. No separate price is charged for gunny bags but their cost is taken into account in fixing the price of fertiliser. The Tribunal has found that the very composition of fertiliser is such that to prevent acidic action and to protect the article from outside atmospheric effect and to keep it fit for use it has to be packed and sold in polythene-lined gunny bags. It has further been found that the bags have no value by the time the fertiliser reaches the consumer-buyer as they become useless due to acidic and chemical action of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tainer and the customer intended to buy the same? It is not possible to state as a proposition of law that whenever particular goods were sold in a container the parties did not intend to sell and buy the container also. Many cases may be visualized where the container is comparatively of high value and sometimes even higher than that contained in it. Scent or whisky may be sold in costly containers. Even cigarettes may be sold in silver or gold caskets. It may be that in such cases the agreement to pay an extra price for the container may be more readily implied............. Whether there was an agreement to sell the packing materials is a pure question of fact and that question cannot be decided on fictions or surmises. That is what h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which has to be broken and made useless before taking out the injectable liquid from it. Having regard to all the facts and circumstances of the case, it cannot be said that the assessee intended to sell and the buyers from it intended to buy the polythenelined bags when the fertiliser packed in the bags was sold. The more reasonable conclusion is that there was no sale of bags which were used as a cheap and convenient vehicle of transport of the fertiliser sold by the assessee. 5.. The learned counsel for the department referred to us the case of M.A. Razack Company v. State of Madras[1967] 19 S.T.C. 135 (S.C.). This case, however, is clearly distinguishable. In this case, the question was whether exemption in respect of packing mater ..... X X X X Extracts X X X X X X X X Extracts X X X X
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