( 1. ) THIS is a reference under Section 44 (1) of the M. P. General Sales Tax Act, 1958, hereinafter called the Act, made by the Board of Revenue at the instance of the Commissioner of Sales Tax. The following question of law has been referred to this Court for its opinion :

Whether, in the facts and circumstances of the case, the finding that there was no implied sale of the packing material along with the sale of bales of cloth and yarn was justified ?

( 2. ) THE material facts giving rise to this reference, as set out in the statement of case, are briefly as follows :

The assessee, M/s. Swadeshi Cotton and Flour Mills Ltd. , Indore, is engaged in the business of manufacture and sale of cotton textile, yarn, etc. The assessment year in question is the calendar year 1962, The gross turnover of the assessee was determined at Rs. 2,16,07,478, which included the sale of 23,684 bales of cloth for Rs. 1,91,03,718. As the bales of cloth were packed with bardana and iron hoops, the assessing authority held that there was an implied sale of bardana and iron hoops and assessed "them to tax at the rate of Rs. 2. 50 per bale for bardana and Rs. 1. 50 per bale for iron hoops. The asse