The central legal point established in the judgment is the intention of the State to levy tax on the amount for which goods are sold, irrespective of the cost of packing material, as clarified by the declaratory nature of Section 3-AB of the U.P. Trade Tax Act.

( 1 ) THESE ten revisions bearing Nos. 891 to 900 of 1999 have been filed by the assessee-applicant against a common order dated September 25, 1999 passed by the Trade Tax Tribunal, Bench 4, agra in Second Appeal Nos. 41 of 1995 [1985-86] State, 42 of 1995 [1985-86] Central, 43 of 1995 [1986-87] State, 44 of 1995 [1986-87] Central, 268 of 1993 [1987-88] State, 269 of 1993 [1987-88] Central, 85 of 1994 [1988-89] State, 84 of 1994 [1988-89] Central, 516 of 1994 [1989-90] State and 517 of 1994 [1989-90] Central. The applicant is a sugar mill and is engaged in the business of manufacture and sale of sugar. For the consecutive assessment years 1985-86 to 1989-90 both under the U. P. and Central Sales Tax Acts, the applicant did not admit any tax liability on gunny bags purchased by it for the packing of sugar as according to it sugar being exempt from levy of sales tax and the applicant having not charged the price of gunny bags separately from its customers, there was no liability for payment of sales tax on the gunny bags which were used in the packing of sugar. The assessing authority did not accept the claim put forward by the applicant and imposed sales tax on the value of the gunny bags treating it to be an implied sale.

( 2 ) THE first appeals filed by the applicant were dismissed by the first appellate authority which orders have been upheld by the Trade Tax Tribunal, Bench 4, Agra in second appeals filed by the applicant vide order dated September 25, 1999. The applicant is aggrieved against the aforesaid order of the Tribunal.

( 3 ) I have heard Shri V. K. Birla, learned counsel appearing for the applicant and Shri B. K. Pandey, learned Standing Counsel, who represented the respondent.

( 4 ) THE learned counsel for the applicant submitted that the applicant having not charged any price for the gunny bags which it had used in the packing of sugar while effecting the sale of sugar to its customers cannot be subjected to tax on the ground of implied sale of gunny bags. He submitted that this Court in series of decisions have held that unless a separate price is charged for the gunny bags, the supply of sugar in gunny bags would not result in specific sale of the gunny bags so as to attract sales tax. Reliance in this behalf has been placed on the decision of this Court in the case of Commissioner of Sales Tax v. L. H. Sugar Factory, Pilibhit reported in 1996 UPTC 101, U. P. Sugar Co. Ltd. , Padrauna v. Trade Tax Officer, Padrauna reported in 1999 uptc 326 and Kichha Sugar Co. Ltd. , Kichcha, Nainital v. Commissioner of Sales Tax, U. P. , lucknow reported in 1999 UPTC 716.

( 5 ) SHRI B. K. Pandey, learned Standing Counsel, however, submitted that this Court as far as back in the year 1991 in the case of the applicant itself, viz. , Chhatta Sugar Company Ltd. v. Commissioner of Sales Tax reported in 1991 UPTC 341, had already held that the applicant is liable to pay sales tax on gunny bags used in the packing of sugar while effecting the sale of sugar as there is an implied contract of sale of gunny bags and the price of gunny bags has been taken into consideration while fixing the price under the levy sugar scheme by the Government of India. He submitted that the applicant had purchased gunny bags from outside the State of u. P. and had used those gunny bags in the sale of free sale sugar effected by it. He relied upon the findings recorded by the Tribunal in this behalf which is reproduced below for the sake of convenience :

"appeal karta dwara vishisth prakar ke bore ki kharid prant bahar se ki gai hai tatha un boron ka prayog kewal khule bazar me bikri kiya gaya hai tatha levy ki chini ke sath ve bore nahi diye gaye hai. Khule bazar me jo chini bechi gai hai uska mulya bhi adhik tha tatha uske saath vishesh prakar ke borey diye hai atah borey ka mulya chini ke mulya ke saath vasool kiya gaya hai jo boro ki bikri ka apratyach contract ke tulya hai jo borey chini ke saath supply kiye gay hai ve punah prayog