TMI Blog1997 (3) TMI 595X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee is a dealer in wheat and wheat products and reported the taxable turnover of Rs. 6,09,895.75 for 1978-79 and Rs. 10,45,413 for 1979-80. But, the assessing authority determined the taxable turnover at Rs. 11,45,664 for the year 197879 and at Rs. 15,26,857 for the year 1979-80. While so determining the taxable turnover, the assessing authority found that the assessee has sold wheat products in the course of the inter-State trade, along with the gunny bags and the sale price included the value of the said gunnies also. So, considering the number of gunny bags the assessing authority estimated the relative sale value of the gunny bags at the rate of Rs. 8 per bag and thus arrived at the estimated sales turnover of gunnies as below: As ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ged only the value of wheat. Simply because there is an instruction to the branch depot that not more than eleven gunny bags should be used it does not mean that there was a contract for the purchase of gunnies......... .............................. In the present case there is no agreement to sell the packing materials between the Food Corporation of India and the appellants. The packing materials were not the subject of agreement of sale 'express' or 'implied'. The parties did not intend to sell or buy the packing materials and the packing materials did not form part of the bargain at all, but were used by the sellers as a convenient and cheap vehicle of transport." So, observing, the Tribunal set aside the order of the Appella ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lied agreement between the relevant parties to sell the above said gunny bags. As already mentioned, the value of each of the above said gunny bags has been estimated at the rate of Rs. 8 per bag [in the above referred to T.C.(R) No. 885 of 1984 the value of the gunny bags was estimated at Rs. 3 per bag]. Further the total turnover in the present case, in relation to the assessment year 1978-79 comes to Rs. 5,87,936 for the above referred to the entire 73,492 bags. Likewise, the corresponding figure in the year 1979-80 was Rs. 5,23,584 for the above referred to 65,448 bags. When the value of the bags is so much appreciably high, it could be easily inferred that there was an implied agreement to sell those gunny bags. The above referred to d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it cannot be held that the price charged is only for the value of the wheat. Further even assuming that for packing the wheat products the assessee utilised the same gunny bags in which the wheat was received, it cannot be said that the gunny bags were of insignificant value, when it is found that the value of the each gunny bag is estimated in the present case at as much as Rs. 8 per bag, while in our judgment dated January 22, 1997 the value was only Rs. 3 per bag. Further it is also found that the assessee has also purchased gunnies outright, from registered dealers. 7.. In the light of all the above features and the above referred decisions, we are of the view that the Tribunal has erred in law in coming to the conclusion it reached a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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