COMMISSIONER OF TAXES ASSAM, SHILLONG vs PRABHAT MARKETING CO. LTD., GAUHATI

The Supreme Court addressed the applicability of sales tax on packing materials under the Assam Sales Tax Act, 1947. It held that the assessment of sales tax on containers of hydrogenated oil was erroneous as there was no evidence of a separate price being charged for the containers, which is essential for establishing a sale. The Court emphasized that the determination of whether there was an agreement to sell packing material is a factual question that must be evaluated based on the circumstances of each case, thereby overturning the High Court's conclusion.