2010 (2) TMI 1089

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....tified in holding that the gunny bags sold along with exempted bidi is also exempted from tax under section 8(2A) of the Central Sales Tax Act, 1956, read with Explanation annexed to the definition of 'sale price' defined under section 2(o) of the M. P. General Sales Tax Act? Whether, under the facts and circumstances of the case, the Tribunal was justified to the above in the light of the fact that for inter-State sale the definition of 'sale' as defined under section 2(g) of the Central Sales Tax Act shall be applicable?" Briefly stated, the facts of the case, as projected in the statement of case, are that during the year 1985-86 the respondent-dealer in the process of inter-State trade of tax-free bidi had also sold gu....

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....2 of the Act. Since in the present case gunny bag is not included in the Schedule I and there is no notification under section 12 of the Act for exemption, the assessee was not entitled for exemption from payment of sales tax under section 8(2A) of the Act, 1956. On the other hand, Mr. Dubey, learned counsel for the respondent would submit that by virtue of the Explanation appended to section 2(o) of the Act, 1958 there is a legal fiction that packing material shall be deemed to have been sold along with the goods. Although there is no sale of the packing materials, it will be deemed that there is such a sale and the tax will be leviable on such deemed sale of packing material at the rate of tax applicable to the sale of goods themselves.....

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.... for anything done by the dealer in respect of the goods at the time of or before delivery thereof other than the cost of freight or delivery or the cost of installation. When such cost is separately charged and the expression 'purchase price' shall be construed accordingly. Explanation.-Where goods are sold together with packing material or container, then notwithstanding anything contained in this Act the sale price of such goods shall be inclusive of the price or the cost or value of such packing material or container, whether such price or cost or value is charged separately or not, as if such packing material or container were the parts of the goods sold.' Section 2(g) of the Act, 1956: 'Sale', with its grammatic....

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....at the lower rate. Explanation.-For the purposes of this sub-section, a sale or purchase of any goods shall not be deemed to be exempt from tax generally under the sales tax law of the appropriate State, if under that law the sale or purchase of such goods is exempt only in specified circumstances or under specified conditions or the tax is levied on the sale or purchase of such goods at specified stages or otherwise than with reference to the turnover of the goods." From the plain reading of definition of "sale price" in section 2(o) of the Act, 1958, it is manifestly clear that where the goods are sold together with packing materials or container, then the sale price of such goods shall be inclusive of the price or cost or value of such....