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TMI Blog1997 (8) TMI 466X X X X Extracts X X X X X X X X Extracts X X X X ..... gs was estimated by the assessing officer at Rs. 6,28,476 and was subject to tax of Rs. 62,848 principally on the ground that according to the calculations made by the assessing officer, the assessee was realising a very high gross profit of 7 per cent. He calculated the value of 2,09,492 bags of cotton seeds at Rs. 2,32,01,376.16 and determined the value per bag at Rs. 110.75. He computed the purchase price of the cotton seeds at Rs. 103.08. He, thereafter, proceeded to presume that this high profit margin was due to the non-payment of tax on the sale value of the gunny bags. 3.. The fact that the assessee had purchased gunny bags against C forms for Rs. 6,91,425 during the assessment year, viz., 1982-83 was not in dispute. That the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ers. It noticed the fact that in the bills produced, there was no mention about the value of the packing material either expressly or impliedly. The assessee had filed before the Tribunal certified copy of its trading account, as also copies of the sale bills issued by the assessee for inter-State sales of cotton seeds. 5.. The Tribunal, on a careful scrutiny of all the materials placed before it and evaluating their evidenciary value, has thus found, as a matter of fact, that the Revenue had not discharged the onus, which lay upon it, to show that there was an implied agreement for the sale of the packing material along with the commodity that was sold, viz., cotton seeds. The Tribunal, therefore, granted relief to the petitioner and hel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ] 74 STC 379. 8.. The Supreme Court in the case of Raj Sheel [1989] 74 STC 379 observed, inter alia, as under: It is, therefore, perfectly plain that the issue as to whether the packing material has been sold or merely transferred without consideration depends on the contract between the parties. The fact that the packing is of insignificant value in relation to the value of the contents may imply that there was no intention to sell the packing, but where any packing material is of significant value it may imply an intention to sell the packing material. In a case where the packing material is an independent commodity and the packing material as well as the contents are sold independently, the packing material is liable to tax on its ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... material or that it found that the value of the packing material was high or it exercised its jurisdiction in appeal and not in revision. 11.. Even if two different views are possible on the facts, which were considered by the Tribunal, this Court would not interfere solely on the ground that a different view on the same set of facts is possible and that the Tribunal had failed to take such a view. It was open to the Tribunal, after appreciating the facts placed before it to come to a conclusion as to whether the Revenue had discharged its onus of establishing that there was an implied agreement for sale of the packing material. The Tribunal has found that that onus was not discharged. The reasons given by it for coming to such a conclusi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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