DESAI, J. - The question involved in this reference is whether the applicants are dealers as defined in section 2(6) of the Bombay Sales Tax Act, 1953, and liable to registration.

The applicants M/s. Babulal Onkarmal & Co. are a concern engaged in the business of ginning and pressing cotton in the factory owned by them. In the process of ginning and pressing of the cotton and converting it into bales of cotton, they utilise hessian and iron hoops, which they purchase. These hessian and iron hoops used in the pressing and making of the cotton bales go the customers along with the bales. The turnover of the purchases of hessian and iron hoops made by the applicants and utilized in their business exceeded the limit of Rs. 25,000 a year. The applicants under section 27 of the Bombay Sales Tax Act of 1953 applied to the Additional Collector of Sales Tax to determine whether the applicants were dealers within the meaning of section 2(6) of the said Act and whether they were liable for registration. The Additional Collector held that the applicants were dealers liable for registration. The applicants then took an appeal before the Tribunal, but the said appeal was also dismissed.