Ramaswami, J. - (1.) These appeals are brought, by special leave, from the Judgment of the High Court of Assam and Nagaland, dated May 20, 1964 in Sales Tax Reference No. 1 of 1963.
(2.) The respondent is a registered dealer under the Assam Sales Tax Act (Act XVII of 1947). For the two periods ending September 30, 1959 and September, 30, I960, the Sales Tax Officer assessed the respondent to sales tax holding that hydrogenated oil was exempt from sales tax but the value of the containers should be assessed at Re. 1 for each container of hydrogenated oil and 2 annas for salt bag and a small mustard oil tin which are other exempted goods for the period ending September 30, 1959. For the other period ending September 30, 1960, the value of the containers of the exempted goods was estimated at Rs. 21,500. The respondent preferred appeals to the Assistant Commissioner of Taxes, but the appeals were dismissed. The respondent preferred second appeals before the Assam Board of Revenue which by its order, dated June 17, 1963 also dismissed the appeals. The respondent thereafter filed an application under S. 32 of the Assam Sales Tax Act, 1947, for reference of the following two questions of law to the High Court: 1. Whether delivery, of goods made to the Assam Rifles and NFFA, at Rowriah Air Port for consumption outside the State of Assam, constitutes a sale liable to Sales Tax under the Act 2. Whether the value of the containers, of hydrogenated oil is assessable to Sales Tax under the Act though the oil itself is not taxable under it - By its judgment, dated May 20, 1964 the High Court answered the first question against the assessee. With regard to the second question, the High Court held that the value of the containers was not assessable to sales tax "unless separate price has been charged for the containers". The High Court took the view that there was no evidence to show that actually separate price was paid for the containers and hence there was no sale and there could not be any tax on the containers. The High Court accordingly answered the second question in favour of the assessee.
(3.) The question presented for determination in these appeals is whether the value of containers of hydrogenated oil is assessable to sales tax under the Assam Sales Tax Act, 1947.;