Separate sale of cement and packing material accepted where invoices and conduct showed distinct contractual treatment.

Under the unamended packing-material provision applicable to the assessment year, separate sale of cement and packing material was legally permissible if supported by the parties' intention and the facts. The invoice separately stated the price of cement and HDPE bags, and in the absence of rebutting material it was treated as reliable evidence of the contractual arrangement. The record also indicated that the bags were not supplied free of cost. On that basis, the transaction was characterised as separate sales rather than a single composite sale, and the later amendment to the schedule was noted as reinforcing statutory recognition of separate treatment.

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Issues: Whether the sale of cement and HDPE bags or packing material constituted an integrated sale or separate sales supported by an express or implied contract.

Analysis: For the assessment year in question, the unamended packing-material provision applied, under which separate sale or agreement for sale of packing material was legally permissible. The transaction had to be decided on the facts and the intention of the parties. The invoice showed cement sold in metric tonnes with the price of cement and packing material separately stated. In the absence of rebutting material, the invoice furnished reliable evidence of the parties' arrangement. The record also supported the view that the bags were not supplied free of cost and that the sale of cement and packing material was not a single composite transaction. The later amendment to the schedule, which specifically contemplated separate sale of cement and packing material, reinforced that such separate treatment was recognized in the statutory scheme.

Conclusion: The sale of cement and HDPE bags was a separate sale and not an integrated sale, and the appellant established an express or implied contract for separate sales.

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