Packing materials supplied with packed goods formed part of the sale and were liable to sales tax.

Turnover attributable to packing materials used for delivering cotton and yarn was held liable to sales tax because the sale of the packed goods necessarily included an implied agreement to supply the packing materials. The finding that the seller intended to charge for the packing materials was a factual one supported by evidence and was treated as binding. The transaction satisfied the elements of sale, including agreement to transfer title in the packing materials and the passing of property for money consideration, so the related turnover fell within the tax net.

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Issues: Whether the turnover representing the price of packing materials used for delivering cotton and yarn was liable to sales tax.

Analysis: The goods were intended to be sold as packed, and the contract for sale of the goods necessarily carried an implied agreement to supply and pay for the packing materials. The Tribunal's finding that the assessee intended to charge for the packing materials was one of fact supported by the evidence and therefore binding. The conditions for a sale were satisfied, including an agreement to transfer title in the packing materials and the actual passing of property for money consideration.

Conclusion: The turnover relating to the packing materials was liable to sales tax, and the assessee's challenge failed.

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