ORDER DHIRENDRA MISHRA, J. The Board of Revenue (for short, "the Board") has made this reference under section 44 of the M.P. General Sales Tax Act, 1958 (for short "the Act, 1958") and has referred following questions of law along with statement of case arising out of the order dated October 20, 1998 passed by the Board for our opinion : "Whether, under the facts and circumstances of the case, the Tribunal was justified in holding that the gunny bags sold along with exempted bidi is also exempted from tax under section 8(2A) of the Central Sales Tax Act, 1956, read with Explanation annexed to the definition of 'sale price' defined under section 2(o) of the M.P. General Sales Tax Act ? Whether, under the facts and circumstances of the case, the Tribunal was justified to the above in the light of the fact that for inter-State sale the definition of 'sale' as defined under section 2(g) of the Central Sales Tax Act shall be applicable ?" Briefly stated, the facts of the case, as projected in the statement of case, are that during the year 1985-86 the respondent - dealer in the process of inter-State trade of tax-free bidi had also sold gunny bags. The assessing officer allowing tax exemption in the sale of bidi imposed Central sales tax at 11 per cent on the sale proceeds of gunny bags. In the first appeal, the Appellate Deputy Commissioner, Sales Tax, Raipur vide its order dated July 11, 1989 confirmed the order of the assessing officer. However, the Board allowing the appeal of the assessee held that in view of the Explanation to section 2(o) of the Act, 1958 since the bidi is a tax-free commodity, therefore, gunny bags is also tax-free. However, the instant reference has been made at the instance of the Revenue for our opinion on the questions of law referred above. Mr. Deo, learned Government Advocate, submitted that definition of "sale price" given in section 2(o) of the Act, 1958 is to be considered in the light of section 2(g) of the Central Sales Tax Act, 1956 (for short, "the Act, 1956") keeping in view the liability to tax for inter-State sale, as provided under sections 6(1A) and 8(2A) of the Act, 1956. Section 6(1A) of the Act, 1956 clearly stipulates that the dealer shall be liable to pay tax in the course of inter-State trade or commerce notwithstanding that no tax would be leviable under the sales tax law of the appropriate State if that sale had taken place inside the State. Section 8(2A) only provides that section 6(1A) would not be applicable and exemption from payment of sales tax may be given where goods are tax-free under the Schedule I to the State Act or by notification under section 12 of the Act. Since in the present case gunny bag is not included in the Schedule I and there is no notification under section 12 of the Act for exemption, the assessee was not entitled for exemption from payment of sales tax under section 8(2A) of the Act, 1956. On the other hand, Mr. Dubey, learned counsel for the respondent would submit that by virtue of the Explanation appended to section 2(o) of the Act, 1958 there is a legal fiction that packing material shall be deemed to have been sold along with the goods. Although there is no sale of the packing materials, it will be deemed that there is such a sale and the tax will be leviable on such deemed sale of packing material at the rate of tax applicable to the sale of goods themselves. Though, section 6(1A) of the Act, 1956 provides that a dealer shall be liable to pay tax under this Act in the course of inter-State trade or commerce notwithstanding that no tax would have been leviable under the sales tax law of the appropriate State if that sale had taken place inside that State, however, section 8(2A) mandates that notwithstanding the provisions of section 6(1A), the tax payable under this Act by a dealer with respect to his turnover, which relates to the sale of any goods, is exempt from tax, generally or subject to tax generally at a rate which is lower than four per cent under the sales tax law of that State, shall be nil or calculated at the lower rate. Bidi was exempted from the payment of sales tax during the period under consideration. In view of the Explanation to section 2(o) of the Act, 1958, packing material, i.e., gunny bags, becomes part of the goods sold, i.e., bidi and thus tax-free. Bidi was exempted from the payment of sales tax during the period under consideration. In view of the Explanation to section 2(o) of the Act, 1958, packing material, i.e., gunny bags, becomes part of the goods sold, i.e., bidi and thus tax-free. Therefore, in view of section 8(2A), no sales tax was leviable for the turnover of inter-State trade of packing material, gunny bags, with the goods bidi. We have heard learned counsel for the parties. The provisions relevant for answering the questions of law referred to us are reproduced hereinbelow : "Section 2(o) of the Act, 1958 : 'Sale price' means the amount payable to a dealer as valuable consideration for the sale of any goods less any sum allowed as cash discount, according to ordinary trade practice but inclusive of any sum charged for anything done by the dealer in respect of the goods at the time of or before delivery thereof other than the cost of freight or delivery or the cost of installation. When such cost is separately charged and the expression 'purchase price' shall be construed accordingly. Explanation. - Where goods are sold together with packing material or container, then notwithstanding anything contained in this Act the sale price of such goods shall be inclusive of the price or the cost or value of such packing material or container, whether such price or cost or value is charged separately or not, as if such packing material or container were the parts of the goods sold." Section 2(g) of the Act, 1956 : 'Sale', with its grammatical variations and cognate expressions, means any transfer of property in goods by one person to another for cash or for deferred payment or for any other valuable consideration, and includes a transfer of goods on the hire-purchase or other system of payment by instalments, but does not include a mortgage or hypothecation of or a charge or pledge on goods : Section 6(1A) of the Act, 1956 Liability to tax on inter-State sales : 6(1)... (1A) A dealer shall be liable to pay tax under this Act on a sale of any goods effected by him in the course of inter-State trade or commerce notwithstanding that no tax would have been leviable (whether on the seller or the purchaser) under the sales tax law of the appropriate State if that sale had taken place inside that State. Section 8(2A) of the Act, 1956 8. Rate of tax on sales in the course of inter-State trade or commerce. - (1) to (2) ... (2A) Notwithstanding anything contained in sub-section (1A) of section 6 or sub-section (1) (or clause (b) of sub-section (2) of this section, the tax payable under this Act by a dealer on his turnover in so far as the turnover or any part thereof relates to the sale of any goods, the sale or, as the case may be, the purchase of which is, under the sales tax law of the appropriate State, exempt from tax generally or subject to tax generally at a rate which is lower than (four per cent) (whether called a tax or fee or by any other name), shall be nil or, as the case may be, shall be calculated at the lower rate. Explanation. - For the purposes of this sub-section, a sale or purchase of any goods shall not be deemed to be exempt from tax generally under the sales tax law of the appropriate State, if under that law the sale or purchase of such goods is exempt only in specified circumstances or under specified conditions or the tax is levied on the sale or purchase of such goods at specified stages or otherwise than with reference to the turnover of the goods." From the plain reading of definition of "sale price" in section 2(o) of the Act, 1958, it is manifestly clear that where the goods are sold together with packing materials or container, then the sale price of such goods shall be inclusive of the price or cost or value of such packing material or container and the same shall be construed as if such packing materials or container were parts of the goods sold for the purpose of sale price of such goods. Thus, by virtue of section 2(o) of the Act, 1958 there is a legal fiction that packing material shall be deemed to have been sold along with goods and the tax will be leviable on such deemed sale of packing material at the rate of tax applicable to the sale of the goods themselves. Thus, by virtue of section 2(o) of the Act, 1958 there is a legal fiction that packing material shall be deemed to have been sold along with goods and the tax will be leviable on such deemed sale of packing material at the rate of tax applicable to the sale of the goods themselves. Section 6(1A) of the Act, 1956 provides that in the event of inter-State trade or commerce of any goods by the dealer, he is liable to pay tax under the Act, 1956 notwithstanding that no tax would have been leviable if that sale had taken place inside that State under the sales tax law of that State. However, section 8(2A) of the Act, 1956 clearly provides that notwithstanding anything contained in section 6(1A) or sub-section (1) or clause (b) of sub-section (2) of that section, tax payable under this Act shall be nil or as the case may be, shall be calculated at the lower rate where the turnover relates to the sale of any such goods which is exempt from the payment of tax generally or subject to tax generally at the rate which is lower than four per cent. In view of the provisions of section 8(2A) of the Act, 1956 and section 2(o) of the Act, 1958, we are of the opinion that the Board was justified in holding that the gunny bags sold along with exempted bidi is also exempted from the payment of Central sales tax under section 8(2A) of the Act, 1956 read with the Explanation annexed to the definition of "sale price" under section 2(o) of the Act, 1958. On the basis of the aforesaid analysis, we answer the questions of law referred to us by the board in affirmative, i.e., in favour of the assessee and against the Revenue, Commercial Tax Department. The reference is accordingly disposed of.