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TMI Blog1967 (5) TMI 58X X X X Extracts X X X X X X X X Extracts X X X X ..... that there was no works contract in this case. Judgment of the High Court is set aside and the order of the Appellate Tribunal restored. - Civil Appeal No. 537, 538 of 1966 - - - Dated:- 4-5-1967 - SHAH J.C. AND SIKRI S.M. JJ. K.N. Mudaliyar, Advocate-General for the state of Madras (A.V. Rangam with him), for the appellant. R. Gopalakrishnan, for the respondent. -------------------------------------------------- The judgment of the Court was delivered by SIKRI, J.- These two appeals by special leave are directed against the judgment of the High Court of Madras, dated January 18, 1963, in Tax Cases Nos. 189 and 192 of 1961. The respondent, M/s. Simpson Co. Ltd., hereinafter referred to as the assessee, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the fitment, and therefore it cannot be said that this was a works contract." It further observed: "As a matter of detail we may point out that it was stated by the State Representative, and the files confirm it, that the appellants separately exhibited the cost of the engines and the cost of fitment in the bills for the years 1951-52, 1952-53 and 1953-54, but so far as the years 1950-51 and 1954-55 were concerned, they did not split them up and made only a consolidated charge; but for the purpose of assessment the departmental officer called upon the appellants to give the cost of labour separately for the two years 1950-51 and 1954-55 also. Accordingly the appellants showed the cost of labour separately and what was subjected to tax w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat "the subject-matter of the levy is the transaction, taken as a whole and not a transaction which can be disintegrated and from and out of which a component called a sale may be extracted." The revision was partly allowed because it was conceded before the High Court that out of the turnover of Rs. 10,55,070 a turnover of Rs. 62,092 represented the value of spare parts and extras supplied by the assessee to the customer. A similar order was passed by the High Court in Revision No. 111 of 1961 (Tax Case No. 192 of 1961) in respect of the assessment year 1954-55. The learned Advocate-General who appears for the appellant contends that on the facts of this case it is quite clear that there was contract to sell Perkins Engines and fit thes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fixed piecemeal and were made into an engine. The suit was for the recovery of a sum of 3,000 as price for 'a main engine and other goods sold and delivered'. The contention of the defendant was that there was no contract of sale, and that the action should have been one for work and labour and materials used in the course of that work and not for price of goods sold and delivered. In upholding this contention Parke, B., observed: 'The engine was not contracted for to be delivered, or delivered, as an engine, in its complete state, and afterwards affixed to the freehold; there was no sale of it, as an entire chattel, and delivery in that character; and therefore it could not be treated as an engine sold and delivered. Nor could the dif ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f Gujarat v. Kailash Engineering Co. (Pvt.) Ltd.[1967] 19 S.T.C. 13 also does not assist the assessee. In that case this Court held that the respondent-engineering company, under the terms of the contract, was not to be the owner of the ready coach bodies and that the property in these bodies vested in the Railway even during the process of construction. No such terms exist in the present case. It seems to us that the Appellate Tribunal was right in its conclusion that there was no works contract in this case. In the result the judgment of the High Court is set aside in both the cases and the order of the Appellate Tribunal restored. The High Court had not awarded costs to the assessee. In the circumstances there will be no order as to c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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