( 1. ) THIS petition and Misc. Petitions Nos. 325, 326 and 327 of 1976 have been filed by the petitioners challenging the assessment orders for the years 1960-61, 1961-62, 1962-63 and 1963-64. The question involved is identical and, therefore, this order will govern the disposal of all the four petitions.

( 2. ) IT is alleged by the petitioners that they are a partnership firm carrying on business at Burhanpur and petitioners Nos. 2 to 6 are partners in the said firm. The firm deals in cotton, cotton-seed, cotton-seed oil and oilcakes. It is registered under the Madhya Pradesh General Sales Tax Act and the Central Sales Tax Act. According to the petitioners, they buy raw cotton "kapaas", get it ginned and pressed into bales by others, who own ginning and pressing factories. The petitioners pay ginning and pressing charges to these factories and sell full pressed bales within the State and outside.

( 3. ) THE petitioner-firm has been assessed to pay sales tax both under the State Act and the Central Act for the period commencing from 18th October, 1963, to 4th November, 1964. For the aforesaid period, respondent No. 4, who is the assessing officer, determined the gross turnover at Rs. 1,43,84,771. 00 and the tax has been levied on the break-up as below:

(1) Sales of fully pressed cotton bales without C form taxable at 1 per cent Rs. 1,42,45,896. 00 (2) Sales of Hessian without C form and hoops taxable at 10 per cent--tax Rs. 13,887. 50 Rs. 1,38,875. 00 Rs. 1,43,84,771. 00 The petitioners have by this petition challenged the levy of sales tax on item No.

(2) above.

( 4. ) IT is alleged by the petitioners that when the petitioners purchase raw cotton and get it ginned and pressed, they pay the ginning and pressing charges per khandi of cotton but do not pay anything for the bardana, hessian and hoops, which the pressing factory uses for pressing the bales. It is also alleged that the petitioners receive orders for supply of specified number of fully pressed cotton bales and they supply such bales to the buyers. But the price quoted is per khandi of cotton and not per bale and, in determining the price, the bales are weighed and the standard weight of hessian and hoops is deducted from the weight of each bale and, on the basis of the weight of cotton, bills are made, according to the price per khandi of cotton, and no price is charged for hessian and hoops by the petitioners. It is also alleged that, while determining the selling rates of cotton, the price of raw cotton and pressing and ginning charges are also taken into consideration. It is therefore contended in these petitions that, although the agreement was to sell fully pressed cotton bales, there was no specific or implied agreement for sale of the packing material.

( 5. ) RESPONDENT No. 2, the Regional Assistant Commissioner of Sales Tax, who was the assessing officer, has estimated the price of hessian and hoops at Rs. 5. 50 per bale and as he found that 25,250 bales had been sold, he estimated the price of the packing material and assessed the tax at 10 per cent.

( 6. ) AGAINST this order, the petitioners filed a revision petition which was heard and decided by respondent No. 3, who, by his order dated 29th November, 1971, reduced the tax on hoops to 2 per cent, but otherwise dismissed the revision petition. Respondent No. 3 held that hessian and hoops were supplied under the contract of sale of goods.

( 7. ) IN the return filed by the respondents, the facts mentioned in paragraphs 1 and 2 of the petition are admitted; but, in reply to paragraph 3, it is alleged that, when the pressing factories charge the pressing charges, they include the price of the packing material. It is further contended in the return that, as the contract for sale of fully pressed cotton bales is entered into, the packing material used by the pressing factory also is sold along with the bales. It is also alleged that the selling rate of cotton bales includes the pressing charges and, therefo