STATE OF TAMIL NADU ETC. vs CEMENT DISTRIBUTORS PRIVATE LTD. ETC. ETC.

The Supreme Court held that producers supplying cement in gunny bags under government directives are not liable to pay sales tax on the turnover related to the price of the gunny bags, as the price was controlled and thus not considered 'sales' under the relevant statutes. The Court applied the principles from New India Sugar Mills Ltd. and Chittar Mal Narain Dass, concluding that the price of gunny bags should not be included in taxable turnover. Additionally, it was determined that charges for packing exempted under Rule 6(f) included both packing material and labor charges, rejecting the appellant's contention that only service charges were exempted.