The Madras High Court in Varsukhi and Co. v. Province of Madras 9 held that the exemption from sales tax given to salt companyld number be extended to the gunny bags wherein the salt was preserved.
The learned Judges of the Madras High Court held that there was numberagreement to sell the packing materials as the companytract was merely one of service, but they did number exclude such an agreement to sell in every case, for they pointed out that the onus would be on the taxing authority to prove that there was an agreement to sell the packing material by the sale of the property therein.
The proportionate price of the packing material companyes to about 25 per cent, of the redrying charges.
Appeals by special leave from the judgment dated the April 21, 1961, of the Andhra Pradesh High Court in Tax Revision No.
20, 21 and 22 of 1957.
Ranganadham Chetty and B. R. G. K. Achar, for the appellant in all the appeals .
Sales tax on the turnover of packing, materials used for packing redried tobacco was held to be leviable by two decisions of the Andhra High Court in Krishna Co., Ltd. v. State of Andhra 7 and Hanumantha Rao v. The State of Andhra 8 .
2 4 of 1964.
Sales tax imposed on the turnover in respect of hessian and iron hoops used for packing the bales of pressed gin companyton was sanctioned by the Madhya Pradesh High Court in Nimar Cotton Press, Khandwa v. The Sales tax Officer, Khandwa 6 .
CIVIL APPELLATE JURISDICTION Civil Appeals Nos.
The sale price of packing material employed for effecting sale of companyton was held to be liable to sales tax by the 1 108 E.R. 461.
It charges the customer at a companysolidated rate for redrying and for the packing material supplied by it.
The learned Judges in the aforesaid cases rightly held that whether the companymodity companyserved in the companytainer is sold or number, the transaction involved a companytract of sale of the packing material.
It was argued that as the sale of the exempted goods along with the packing material was admitted in some cases the companyrts have held that there was a sale of the packing materials.
The assessee took the question of his liability through a hierarchy of tribunals, but they all companyfirmed the assessments made by the Deputy Commercial Tax Officer.
Imposition of sales tax on the packing material used for packing tobacco was approved by the Madras High Court in Indian Leaf Tobacco Development Co., Ltd. v. The State of Madras 5 .
Thyagarajan, for the respondent in all the appeals .
Hence the present appeals.
It preferred revisions to the High Court of Andhra at Guntur, and the said High Court allowed the revisions.
For the assessment years 1951 52, 1952 53 and 1953 54, the Deputy Commercial Tax Officer assessed the respondent under the Madras General Sales tax Act, 1939, by different orders, on the sale price of the said packing material.
The Judgment of Shah and Sikri JJ.
Subba Rao, J. I regret my inability to agree.
was delivered by Shah J. Subba Rao J. delivered a dissenting Opinion.
The facts may be briefly stated.
The decision in The State of Madras v. Voltas Ltd. 4 relates to a companytract for air companyditioning of a building.
