1969 (11) TMI 69 - HC - VAT and Sales Tax

Summary

Issues:
Whether transactions of a photography business constitute a sale or a contract for work and labour.

Analysis:
The petitioner, a photography business, argued that its transactions should be considered contracts for work and labour, not sales, as photography involves skill and diligence in creating artistic products. The petitioner contended that previous treatment of photography as a works contract by the executive should exempt it from sales tax. However, the court held that transactions must be analyzed based on current facts and legal standards, not past classifications.

The court rejected the petitioner's argument that photography is solely a work of art, emphasizing that commercial activity is involved in producing marketable photographs. While skill is required in photography, the essence of the transaction is the sale of a finished product, not just work and labour. The court cited a judgment where a photographer supplying photos to customers was considered a sale of goods, not work and labour.

Referring to precedents, the court concluded that the petitioner's transactions should be characterized as sales, not contracts for work and labour. The court dismissed the writ petitions, ruling against the petitioner's claim, and no costs were awarded.

In summary, the court determined that the photography business's transactions constituted sales of goods rather than contracts for work and labour, based on the commercial nature of the activities and legal precedents. The court emphasized that the skill involved in photography does not negate the fundamental aspect of selling a finished product to customers.