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TMI Blog1968 (3) TMI 105X X X X Extracts X X X X X X X X Extracts X X X X ..... ures as nothing turns on them. The assessing officer took the view that it is only cement that is covered by the requisition for supply under the Cement Control Order, 1956, and the Cement Control Order, 1961, and not the packing material. As to the application of rule 6(f)(ii) its view was that the Central Government fixed the maximum price for packing materials every quarter leaving the actual rate to the discretion of the assessees and the State Trading Corporation. Cement Ltd. v. State of Orissa[1961] 12 S.T.C. 205. and New India Sugar Mills Ltd. v. Commissioner of Sales Tax[1963] 14 S.T.C. 316. laid down that if in a particular transaction there is no bargain but it was brought about by fiat of the law, no contract of sale can be s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... says: "As the State Trading Corporation have decided that all cement should be packed in new DW heavy cess gunny bags only, packing charges of new heavy cess gunny bags have, therefore, been calculated. On the basis explained in the preceding paragraph, the charges for packing one ton cement in new DW heavy cess gunny bags work out to Rs. 12.09 for the next quarter. In pursuance of the powers conferred under sub-section (4) of clause 6 of the Cement Control Order, 1958, the Government of India have accordingly fixed these charges for the next quarter beginning from the Ist January, 1960 and ending on the 31st March, 1960." A careful reading of the Cement Control Orders together with the telegrams and the communication would suggest tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... evant years, would exclude the turnover relating to packing materials from the taxable turnover for each of the years. That rule reads: "6. The tax or taxes under section 3, 4 or 5 shall be levied on the taxable turnover of the dealer. In determining the taxable turnover, the amounts specified in the following clauses shall, subject to the conditions specified therein, be deducted from the total turnover of a dealer. (f) all amount falling under the following two heads, when specified and charged for by the dealer separately, without including them in the price of the goods sold. (i) .................. (ii) charges for packing and delivery and other such like services." The language employed under the second head would undoubted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the paricular facts. Apart from that, in Razack Co. v. State of Madras[1967] 19 S.T.C. 135., the Supreme Court had occasion to deal with a matter which had relation to rule 5(1)(g) of the Madras General Sales Tax (Turnover and Assessment) Rules, 1939. That rule was more or less in terms similar to rule 6(f)(ii), namely, charges for packing and delivery and other such like services. The decision of the Supreme Court would appear to have proceeded on the assumption that the rule included packing materials. Looking at the language itself, assuming that charges for packing include the service charges, there is no reason to suppose that the charges do not include the cost of the packing material. It is also noteworthy that by the rule as ame ..... X X X X Extracts X X X X X X X X Extracts X X X X
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