JAMANA FLOUR & OIL MILL (P) LTD. vs STATE OF BIHAR

The Supreme Court held that under the Bihar Sales Tax Act, 1959, the sale of gunny bags, which are considered a different commodity, is assessable to a higher tax rate of 4.5%. The Court affirmed the Tribunal's finding that there was an implied agreement for the sale of gunny bags along with wheat products, and that the price of the bags is included in the net weight for taxation purposes. The appeal was dismissed, upholding the lower courts' decisions regarding the tax assessment.