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TMI Blog1968 (4) TMI 68X X X X Extracts X X X X X X X X Extracts X X X X ..... lali, bank commission, charity and insurance incurred by the assessee can be included in the sale price and be taxed at the hands of the assessee? (2) Whether in the facts and the circumstances of the case an inference can be drawn that an implied contract existed for the sale of packing materials, i.e., bardana and iron hoops, along with pressed cotton bales and the estimated price of the bardana could be included in the taxable turnover of the assessee holding that there was a sale of bardana?" 2.. The assessee is a dealer in cotton. During the period from 1st April, 1959, to 31st October, 1959, it sold, in the course of inter-State trade, compressed cotton in bales covered with hessian cloth and fastened with iron hoops. In the turnove ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... made during any prescribed period and determined in the prescribed manner." "Sale price" has been defined in clause (h) of section 2, which is as follows: " 'sale price' means the amount payable to a dealer as consideration for the sale of any goods, less any sum allowed as cash discount according to the practice normally prevailing in the trade, but inclusive of any sum charged for anything done by the dealer in respect of the goods at the time of or before the delivery thereof other than the cost of freight or delivery or the cost of installation in cases where such cost is separately charged." It is plain from these definitions that any amount received by a dealer as consideration for the sale of any goods has to be included in the t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n to the decision of the Nagpur High Court in Nemkumar Kesrimal v. Commissioner of Sales Tax, M.P.[1955] 6 S.T.C. 222., where it was held that dharmada realised by the assessee could not be included in the sale price, inasmuch as it was a willing charge paid by the buyer in addition to the valuable consideration for the transfer of property and not a charge for anything done by the dealer in respect of the goods at the time of or before delivery thereof. This case is distinguishable on facts as in that case it was found that dharmada was separately charged and not included in the price. It may be that the assessee recovered dharmada or amount towards charity with the intention of appropriating it to those objects. But so far as the purchase ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... packing material and the parties are impliedly ad idem on the passing of the property in the material qua material and the addition of its price to the pressing charges. The same principle has been reiterated by this Court in The Nimar Cotton Press Factory, Khandwa v. The Commissioner of Sales TaxM.C.C. No. 86 of 1966 decided on the 9th August, 1967; [1968] 21 S.T.C. 505. On the principles laid down in these two cases, there cannot be any doubt that as the property in the packing material vested in the purchasers on payment of a consolidated price and the vesting was not accession, then it was only under an implied contract of sale of the material. 7.. It must be noted that in Chidambara Nadar Sons & Co. v. State of Madras[1960] 11 S.T.C. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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