COMMISSIONER OF SALES TAX Vs. SWADESHI COTTON AND FLOUR MILLS LTD

JUDGEMENT

(1.) THIS is a reference under Section 44 (1) of the M. P. General Sales Tax Act, 1958, hereinafter called the Act, made by the Board of Revenue at the instance of the Commissioner of Sales Tax. The following question of law has been referred to this Court for its opinion :

(2.) THE material facts giving rise to this reference, as set out in the statement of case, are briefly as follows :

(3.) THE learned counsel for the Commissioner contended that the Board erred in relying upon the decision in Binod Mills Co. Ltd. v. Commissioner of Sales Tax 1971 M. P. L. J. 1009, without setting aside the findings given by the Deputy Commissioner. The learned counsel then referred to the decisions reported in Patel Volkart Pvt. Ltd. v. Commissioner of Sales Tax 1972 M. P. L. J. 221 and Bhagwandas v. Commissioner of Sales Tax 1978 M. P. L. J. 334, and contended that in view of these decisions it must be held that the Board had erred in holding that there was no implied sale of the packing material along with the sale of cloth bales.