9911796707
TMI Blog1973 (6) TMI 59X X X X Extracts X X X X X X X X Extracts X X X X ..... value of Rs. 2,43,651 and that this turnover had been omitted to be shown in the return submitted by them. The assessing authority after considering the objections filed by the assessees proceeded to treat the said turnover of Rs. 2,43,651 as a taxable turnover, being the value of the gunnies said to have been sold by the assessees to the Food Corporation of India. The inclusion of the said turnover was questioned by the assessees by filing an appeal before the Appellate Assistant Commissioner, who, however, sustained the addition. Thereafter, the assessees took the matter in appeal before the Tribunal. The Tribunal, after considering the various clauses of the agreement entered into by the assessees with the Food Corporation of India found ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... od Corporation of India. The relevant contract between the Food Corporation of India and the assessees provides that the corporation is to supply wheat packed in gunny bags to the assessees for converting the same into maida, sooji, atta and bran and that the assessees, after such conversion, should deliver to the corporation the said wheat products marked and packed according to the existing standard packings. The services to be rendered by the assessees are taking delivery of the wheat bags from the corporation, cleaning, washing, drying, grinding the wheat supplied, and converting it into various products and delivering them to the corporation packed according to the existing standard packings. In the course of execution of the said work ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d Corporation and the assessees, we are convinced that in this case there cannot be a contract for sale of gunny bags as such by the assessees to the corporation and that it is not possible even to infer an implied contract of sale of gunny bags. It is not in dispute that the agreement does not at all refer to any obligation on the part of the assessees to supply old or new gunny bags and to pack the wheat products in those bags. As a matter of fact, it is seen that the assessees have in most cases used old gunny bags in which wheat was supplied to them and only in cases where such old gunny bags could not be used, they had used new gunny bags for packing the wheat products. The agreement nowhere refers to the value of the gunny bags either ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t there must be a contract express or implied for sale of the very same goods which the parties intended should be sold for a money consideration. According to their Lordships, there must be in the contract for work an independent term for sale of goods by one party to the other for a money consideration. Applying the above test to the facts of this case, it is clear that in the agreement there is no independent term for the sale of gunny bags as such by the assessees to the Food Corporation for a money consideration. As already stated, there is no reference to the supply of gunny bags, either old or new, apart from the contract to grind the wheat and supply wheat products in a packed condition. The assessees have used old and new gunny bag ..... X X X X Extracts X X X X X X X X Extracts X X X X
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