1977 (6) TMI 50

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....y the Deputy Commissioner of Sales-tax, Indore in the first appeal case No. 21/A/75-76. This order will also apply to appeal case No. 68/V/77 and 69/V/77 in which the facts are the same as in the present case under decision. 2. The appellants are a firm dealing in the sale of fertilizers. The grounds of appeal are that the learned Deputy Commissioner of Sales-tax wrongly inferred that there was....

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....taxable turnover of an assessee and he is made liable to pay tax on the sale value of such containers. It was held that there must be a clear finding of the existence of an express or implied contract of sale and that such finding should not be based on fiction or surmises; that in order to constitute a sale there must be an agreement between the parties for the purpose of transferring title to go....

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.... thus be seen that the finding in regard to the sale of containers of fertilizers is based upon what appeared to be an agreement and not what it actually was. Such a conclusion must necessarily be termed as one based upon a surmise and not upon actual fact. 4. The learned counsel for the appellant argued that even it were assumed that there was a contract, the assessing authority as also the le....

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....e-lined bags in which fertilizers were packed had become useless and were, therefore, of practically no value. 5. The learned counsel for the state cited para 4 of the assessment order dated 29th April, 1975 of the sales-tax officer and stated that prior to 1st Aug., 1972 fertilizers as also their containers were exempt from tax vide an order passed by the State Government in a notification iss....