https://www.taxtmi.com/caselaws?id=156078 Where packing materials are used in accordance with the foreign buyer's specific instructions and their cost is not insignificant, an implied sale of those materials may be inferred even without an express contract. The court applied the test whether the packing formed part of the bargain, rather than being a merely incidental or routine vehicle for transport, and held that the facts supported an implied sale. On that footing, the levy of purchase tax on the assessee's purchases of packing materials could not survive, because the basis for the differential tax demand fell away. The reference was therefore answered in favour of the assessee and the contrary tax consequence was set aside. en-us Fri, 19 Jan 1990 00:00:00 +0530 Thu, 12 Sep 2013 18:52:25 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=156078 Where packing materials are used in accordance with the foreign buyer's specific instructions and their cost is not insignificant, an implied sale of those materials may be inferred even without an express contract. The court applied the test whether the packing formed part of the bargain, rather than being a merely incidental or routine vehicle for transport, and held that the facts supported an implied sale. On that footing, the levy of purchase tax on the assessee's purchases of packing materials could not survive, because the basis for the differential tax demand fell away. The reference was therefore answered in favour of the assessee and the contrary tax consequence was set aside. Case-Laws VAT and Sales Tax Fri, 19 Jan 1990 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=156078