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Issues:
Assessment of tax on bardana supplied along with sugar under the M.P. GST Act, 1958. Analysis: The appellant, a wholesale dealer, was assessed for sales tax on bardana supplied with sugar. The Assessing Authority held that the appellant sold bardana to retail dealers along with sugar, estimating its price at Rs. 3 per bag. The Dy. CIT rejected the appellant's contention that there was no separate price for bardana and no contract for its sale. The Appellate Authority upheld the assessment, stating that in the case of bagged sugar, an implied contract for the sale of containers must be inferred. The price fixed by the Collector was considered a composite price for sugar and its container. The appellant argued that as the price of sugar was fixed by the Collector, the supply of sugar did not amount to a sale, and bardana was to be supplied free to retailers without any included price. The orders regarding the fixation of sugar prices indicated that the price was solely for sugar, with no consideration for the bags given to retailers. The appellant contended that there was no sale of bardana, express or implied. The judgment highlighted that the order clearly specified that the price fixed was for sugar alone, with no consideration for the bags supplied to retailers. The transaction did not meet the definition of sale under the Sales of Goods Act as no price was charged for bardana. Therefore, the assessment of tax on bardana was set aside. The judgment distinguished a previous decision of the Kerala High Court, stating that it was not applicable in this case due to the presence of price control. Ultimately, the appeal was allowed, and the assessment of tax on bardana supplied with sugar was overturned.
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