1997 (3) TMI 595

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....ue of gunnies, under the Central Sales Tax Act, 1956 (sic). The assessee is a dealer in wheat and wheat products and reported the taxable turnover of Rs. 6,09,895.75 for 1978-79 and Rs. 10,45,413 for 1979-80. But, the assessing authority determined the taxable turnover at Rs. 11,45,664 for the year 197879 and at Rs. 15,26,857 for the year 1979-80. While so determining the taxable turnover, the assessing authority found that the assessee has sold wheat products in the course of the inter-State trade, along with the gunny bags and the sale price included the value of the said gunnies also. So, considering the number of gunny bags the assessing authority estimated the relative sale value of the gunny bags at the rate of Rs. 8 per bag and thus ....

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....the gunnies. The sale invoices shows that they have charged only the value of wheat. Simply because there is an instruction to the branch depot that not more than eleven gunny bags should be used it does not mean that there was a contract for the purchase of gunnies......... .............................. In the present case there is no agreement to sell the packing materials between the Food Corporation of India and the appellants. The packing materials were not the subject of agreement of sale 'express' or 'implied'. The parties did not intend to sell or buy the packing materials and the packing materials did not form part of the bargain at all, but were used by the sellers as a convenient and cheap vehicle of transport." So, observi....

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....o hold in the present case that there is an implied agreement between the relevant parties to sell the above said gunny bags. As already mentioned, the value of each of the above said gunny bags has been estimated at the rate of Rs. 8 per bag [in the above referred to T.C.(R) No. 885 of 1984 the value of the gunny bags was estimated at Rs. 3 per bag]. Further the total turnover in the present case, in relation to the assessment year 1978-79 comes to Rs. 5,87,936 for the above referred to the entire 73,492 bags. Likewise, the corresponding figure in the year 1979-80 was Rs. 5,23,584 for the above referred to 65,448 bags. When the value of the bags is so much appreciably high, it could be easily inferred that there was an implied agreement to....