No taxable sale of bardana where sugar price covered only the goods and bags carried no separate consideration.

Bardana supplied with wholesale sugar was not separately taxable where the Collector's price fixation order applied only to sugar by weight and required the empty bags to be handed over to retail sellers without a separate charge. Because the order did not include the bags in the quoted price and the purchase and sale bills showed no distinct consideration for bardana, the transaction could not be treated as an express or implied sale of the bags. On those facts, the levy on bardana failed and the assessment was set aside in favour of the assessee.

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Issues: Whether tax could be levied on bardana supplied with wholesale sugar when the Collector's price fixation order treated the quoted price as applicable only to sugar and the bags were to be handed over to retail sellers without any separate price being charged.

Analysis: The price fixation order showed that the wholesale levy price was fixed with reference to the weight of sugar, while the empty bags were to be given to the retail sellers. The order did not take the price of the bags into account, and there was no separate charge for bardana in the purchase or sale bills. On these facts, the transaction could not be treated as a sale of bardana, either express or implied, and it did not amount to a taxable sale within the meaning of the law governing sales of goods.

Conclusion: Tax on bardana was not leviable and the assessment was rightly set aside in favour of the assessee.

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