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TMI Blog1992 (6) TMI 166X X X X Extracts X X X X X X X X Extracts X X X X ..... ment by estimating the value of the gunny bags on the ground that no materials had been placed to indicate the value of the gunny bags. When the matter was pursued on appeal, the first appellate authority has gone into the matter at length and took into account of the facts as noticed from the verification of the accounts that the appellant purchased jaggery packed in very poor and useless gunny bags and no price or value was fixed for the same when they were purchased from agriculturists. The appellant purchased jaggery from the agriculturists and it had not purchased any new or empty gunny bags for packing the jaggery so that it could be said that the appellant would have included the price of gunny while fixing the price of jaggery. In t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eard the learned counsel appearing on either side at length. While the learned counsel for the appellant contended, relying upon the reasoning of the first appellate authority that the turnover in question was not taxable and that at any rate the order passed by the revisional authority is vitiated by perversity of approach and lack of positive or definite material to support its action, the learned Additional Government Pleader would adopt the reasoning of the revisional authority and contend that irrespective of the value of the gunny bags in question used as packing material in these cases or whether it was shown separately or not the same is liable to tax while admittedly all inclusive price has been charged, having regard to the defi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ere is no independent term for the sale of gunny bags as such by the assessee 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 bags for packing the wheat products and this is only in the course of discharging their obligation of grinding wheat and supplying wheat products in a packed condition. The obligation to pack the wheat products in standard packing cannot be construed as an obligation to supply gunny bags for a price. We are, therefore, of the view, that, in this case, the Tribunal has come to the right conclus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tance that the price was Since reported in [1992] 87 STC 134 (Mad.). not separately fixed or that it was shown separately or not was not relevant and that what was really relevant is whether the parties to the transaction either expressly or impliedly agree to sell or transfer the property in the packing materials and whether the price charged included the price of the packing materials also. As a matter of fact the observations of the Division Bench as hereunder will go to show the real ratio of the decision: "In the instant case, in the reply to the notice the assessee had admitted that the price of gunny bags was included in the price of the rice or paddy. That shows that neither rice nor paddy by themselves were sold free nor the gunn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lied according to the character of the component. So far as the case on hand is concerned, not only the value of the packing materials was found to be insignificant when compared to the value of the jaggery but that the prices charged was for the net weight of the jaggery and there was no material to show that either the sale price of the jaggery included the value of the packing material or that an implied sale of packing materials was proved by the existence of any material on record. On such a fact situation of the cases before us, we are of the view that the order of the appellate authority was in accordance with law and it was not permissible for the Joint Commissioner to interfere with the said order on mere assumptions and conjecture ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sion that the gunny bags, should be of good quality there is no material worth justifying the invocation of the suo motu powers of revision by the revisional authority on the facts and circumstances of this case. In the teeth of a specific and categoric finding of the first appellate authority based on accounts on the nature of the transaction, the Joint Commissioner in our view has exceeded his suo motu powers of revision to interfere with the well-considered finding of the appellate authority without any sufficient material or basis. 10.. In the result, the order of the Joint Commissioner is set aside and the order of the first appellate authority is restored. The tax cases (appeals) are allowed. No costs. Appeals allowed. - - Ta ..... X X X X Extracts X X X X X X X X Extracts X X X X
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