Sales tax on packing material value rejected where gunny bags used with sugar did not attract separate liability.

The Court followed its earlier ruling on the same issue and held that the estimated value of gunny bags used as packing material for sugar did not attract separate sales tax in the assessee's hands. The packing material formed part of the sale of sugar, and no independent tax liability arose on its estimated value. The assessee was therefore not liable to sales tax on the gunny bags used for packing the sugar sold by it.

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Issues: Whether the assessee was liable to sales tax on the estimated value of gunny bags used as packing material for sugar sold by it.

Analysis: The question was identical to one previously answered by the Court in favour of the assessee. Following that earlier determination, the Court held that the estimated value of gunny bags used in packing sugar did not attract separate sales tax liability in the assessee's hands.

Conclusion: The assessee was not liable for sales tax on the estimated value of the gunny bags used as packing material for sugar sold by it.

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