Bhopal Sugar Industries Ltd. vs Commissioner of Sales Tax

N.D. Ojha, C.J.—This opinion shall govern the disposal of M. C. C. Nos. 162 of 1985, 163 of 1985 and 164 of 1985 also.

The Board of Revenue, M. P., Gwalior, which is the Tribunal constituted under the M. P. General Sales Tax Act, 1958, has referred the following identical question in these four cases to this Court for its opinion :

Whether or not, on the facts and in the circumstances of the case, the assessee is liable for sales tax in respect of the estimated value of the gunny bags which were used when sugar was sold by the assessee and which were in conformity with the standard prescribed of sugar packing order as prescribed from time to time ?

We have heard learned counsel for the parties. A similar question was referred to this Court for its opinion in Commissioner of Sales Tax Vs. The Bhopal Sugar Industries Ltd., . This was question No. (1) in that case and was answered by saying that the assessee was not liable for sales tax in respect of the estimated value of gunny bags used as packing material of sugar sold by it.

For the reasons already stated in the aforesaid case, our answer to the question referred to us in the aforesaid four cases is that the assessee was not liable for sales tax in respect of the estimated value of the gunny bags which were used as packing material of sugar sold by it. In the circumstances of the case, there shall be no order as to costs.