COMMISSIONER OF SALES TAX Vs. BHOPAL SUGAR INDUSTRIES LTD

JUDGEMENT

(1.) THIS judgment shall also dispose of Miscellaneous Civil Cases Nos. 547 and 778 of 1974.

(2.) THESE are three references made by the Sales Tax Appellate Tribunal (Board of Revenue) referring for our answer two common questions of law which are as follows:

(3.) THE periods of assessment covered by these references are from 1st October, 1964, to 30th September, 1965, and 1st October, 1966, to 30th September, 1967. The assessee is a manufacturer of sugar which was sold during both the periods packed in gunny bags. Sugar is an exempted commodity. In the assessment in respect of the first period, a sum of Rs. 1,32,248 representing the value of the gunny bags in which the sugar sold by the assessee was packed, was included in the turnover and the assessee was taxed on it under the Madhya Pradesh General Sales Tax Act, 1958. Similarly, in respect of the second period, the assessee was taxed on a sum of Rs. 1,29,555 under the Central Sales Tax Act, 1956, and on a sum of Rs. 9,250 under the State Act, both amounts representing the value of gunny bags in which the sugar sold by the assessee was packed. Besides this, in respect of the first period, the assessee was assessed to sales tax under the State Act on the sales of old vehicles, i. e. , one jeep, one car and one truck which were sold respectively for Rs. 7,600, Rs. 3,300 and Rs. 4,700. In respect of the second period, the assessee was assessed to sales tax on the sale of one truck which was sold for Rs. 6,850. The Tribunal maintained the assessment of sales tax on gunny bags for both the periods. The Tribunal also maintained the assessment on the sales of trucks. The assessment on the sales of car and jeep was set aside. The first question in these references has been referred at the instance of the assessee and the second at the instance of the Commissioner of Sales Tax.