Taxable turnover excludes ordinary packing materials absent a separate sale or consideration under the Central Sales Tax Act.

Ordinary packing used for consigning handloom fabrics in inter-State trade was held not to form part of taxable turnover under the Central Sales Tax Act, 1956. Where no separate consideration was charged, the packing materials had no shown resale value, and there was no direct or indirect sale of the packing to the consignee, sales tax could not be levied on their value. The operative principle is that only the sale price of goods sold is taxable turnover, and ordinary wrapping without an independent sale does not attract tax.

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Issues: Whether the value of packing materials used for consigning handloom fabrics in the course of inter-State trade formed part of the taxable turnover under the Central Sales Tax Act, 1956.

Analysis: The packing consisted of ordinary wrapping used in the usual course of trade, and no separate charge was made for it. The materials were not shown to have any resale value, and there was no evidence that the price of the cloth included the price of the packing materials. In the absence of any direct or indirect sale of the packing materials to the consignees, the charge to sales tax could not be sustained, because only the sale price of goods sold is taxable turnover.

Conclusion: The value of the packing materials was not taxable, and the assessment was without sanction of law.

Ratio Decidendi: Sales tax under the Central Sales Tax Act, 1956 can be levied only where there is a sale, direct or indirect, of the goods or materials sought to be taxed, and ordinary packing used without separate consideration does not by itself constitute taxable turnover.

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