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1985 (10) TMI 261 - HC - VAT and Sales Tax
Issues:
1. Whether central sales tax is leviable on gunny bags in which salt is sold by the assessee? 2. Whether the sale of packing material, if not separately charged for, will be exempt from tax when the goods themselves are exempt? 3. Whether there was a separate sale of bardana along with salt, and if so, whether it is liable to tax? 4. Whether the application under section 15(2)(b) of the Act involves any question of law? Analysis: Issue 1: The Board of Revenue referred the question of whether central sales tax is leviable on gunny bags in which salt is sold by the assessee. The Court found that if the goods themselves are exempt from sales tax, then the sale of packing material, when not separately charged for, will also be exempt. In this case, as salt was exempt from sales tax and the proviso to section 5 of the Act was not applicable, no separate sales tax could be levied on the gunny bags. The Court held that no sales tax is payable on the gunny bags in which the salt was packed. Issue 2: The Court referred to a previous case where it was held that there was no sale of "bardana" when salt packed in gunny bags was sold, meaning the dealer did not sell the packing material separately. As the salt was exempt from sales tax and no separate sale of packing material occurred, the Court affirmed that no sales tax was payable on the gunny bags. Issue 3: In another case, the Board of Revenue considered whether bardana sold along with exempted goods is taxable. The Court found that there was no separate sale of bardana as such when salt was sold packed in gunny bags. The Court emphasized that the finding of fact by the Board that the bardana was not separately sold was conclusive, and no question of law was involved. Therefore, the application was dismissed. Issue 4: The Court determined that the application under section 15(2)(b) of the Act, treated as a revision under the Amendment Act, did not involve any question of law. As a result, the application was dismissed, and each party was left to bear their own costs.
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