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The State of Andhra Pradesh Vs. Sirsilk Limited - Court Judgment

LegalCrystal Citation
SubjectSales Tax
CourtAndhra Pradesh High Court
Decided On
Case NumberTax Revision Case Nos. 8, 9 and 24 of 1978
Judge
Reported in[1984]55STC61(AP)
AppellantThe State of Andhra Pradesh
RespondentSirsilk Limited
Appellant AdvocateThe Govenment Pleader for Commercial Taxes
Respondent AdvocateP. Venkatarama Reddy, Adv.
Excerpt:
sales tax - packing - assessee manufacturer of silk yarns and fabrics - did not charge any amount towards packing material used - assessing authority stated in view of that price structure included price of wooden containers presence of so implied contract for sale of wooden boxes can be presumed - mere fact that price structure included price of wooden containers does not mean that there was implied contract to sell wooden containers - held, neither express nor implied sale of packing material. - - on these facts the assessing authority as well as the first appellate authority held that there was an implied contract for the sale of wooden boxes, and therefore, the turnover is exigible to tax......the course of inter-state trade. in their sale bills, they did not charge any amounts towards the packing material used. the price displayed is against the rayon or silk fabrics. no separate charge is made for the wooden boxes in which the fabrics are packed. however, it is stated that the price structure of the fabrics includes the price of the wooden containers. on these facts the assessing authority as well as the first appellate authority held that there was an implied contract for the sale of wooden boxes, and therefore, the turnover is exigible to tax. in appeal, the sales tax appellate tribunal, hyderabad, reversed the decision of the assessing authority and the first appellate authority holding that there was no contract for the sale of wooden boxes which is the packing material.....
Judgment:

Amareswari, J.

1. These three revision cases arise out of the order of the Sales Tax Appellate Tribunal, Hyderabad, in T.A. Nos. 397, 358 and 359 of 1977. The assessees are manufacturers of silk yarn and fabrics at Sirpur Kaghaznagar. After the manufacture of fabrics, they pack them in wooden boxes and sell them within the State and also in the course of inter-State trade. In their sale bills, they did not charge any amounts towards the packing material used. The price displayed is against the rayon or silk fabrics. No separate charge is made for the wooden boxes in which the fabrics are packed. However, it is stated that the price structure of the fabrics includes the price of the wooden containers. On these facts the assessing authority as well as the first appellate authority held that there was an implied contract for the sale of wooden boxes, and therefore, the turnover is exigible to tax. In appeal, the Sales Tax Appellate Tribunal, Hyderabad, reversed the decision of the assessing authority and the first appellate authority holding that there was no contract for the sale of wooden boxes which is the packing material in this case - either express or implied. In reaching this conclusion, the Appellate Tribunal took into consideration two circumstances, viz., that the sale bills do not disclose that any amount was charged for the packing material, and that the price displayed is against the rayon or silk fabrics and that no separate charge is made for the wooden boxes in which the fabrics are packed. It is no doubt true that the price structure of the fabrics includes the price of the wooden containers. But that by itself does not show that there is an implied contract of sale of the packing material also. The question whether there was an agreement to sell the packing material is a pure question of fact. On the material available, the Appellate Tribunal came to the conclusion that there was no sale of the packing material either express or implied. The reasons given for reaching that conclusion cannot be said to be either irrelevant or extraneous. They are germane to the matter under enquiry. On the facts established it cannot be said that the finding of the Appellate Tribunal is either perverse or not based on any evidence. In this context, it may be pointed out that it is not in dispute that the main goods themselves are exempt from tax. For the above reasons, we dismiss these three sales tax revision cases. No costs. Advocate's fee Rs. 150 in each.


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