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TMI Blog1958 (9) TMI 62X X X X Extracts X X X X X X X X Extracts X X X X ..... s, wood, cement etc. In the case of some of these contractors the supply of the materials had been arranged for by the Public Works Department or by the Development Board. The value of the materials used in connection with those contracts had not been included in their turnovers by the contractors. The Sales Tax Officers had, therefore, issued notices of reassessment to these firms and assessed them on the value of these materials also taking the view that all these materials must be deemed to have been sold by the assessees to the persons for whom they made the contracted constructions. The assessees went up in appeal to the judge Appeals, Sales Tax, and contended that the material supplied in connection with the construction which they ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the labour charges, if their cost is not separately shown in the bills? (4) Whether the assessees were not liable to pay tax on the turnover of the building materials supplied through the Development Board? Till recently there was a sharp difference of opinion between the various High Courts on the main question covered by these references. Some of the High Courts had taken the view that even in works contracts or building contracts like those in question in these references the materials used could be held to have been sold and their value was on that account liable to be included in the turnover which was to be assessed. Other High Courts had taken a different view. Now the matter has been considered by the Supreme Court first in the cas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been laid down by the Supreme Court in the cases aforementioned, in spite of this attempt such materials must remain exempt from liability to be assessed. The decision of the Supreme Court has thus really concluded the matter against the State and brought the controversy to a close. In view of it further discussion on the point appears to be unnecessary. The opinion of the Sales Tax Authorities that the building materials used by the applicants in connection with their contracts were liable to be assessed cannot therefore be upheld. The distinction sought to be made by them between materials which had been arranged for by the Public Works Department or the Development Board and materials not so arranged for also becomes immaterial and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st accordingly be answered in the same form. Our answers to those questions are, therefore, as follows: (1) When contractors use building materials in connection with the constructions which they have undertaken to construct, unless there is a specific and distinct contract that such building materials are being sold, there is no sale of the materials. (2) So far as the building or works contracts and the materials used in connection with those contracts are concerned, the contractors are not "dealers" within the meaning of the U.P. Sales Tax Act because they cannot be held to have sold the materials. (3) The value of the building materials used in connection with the construction contracts cannot be included in the turnover of the contract ..... X X X X Extracts X X X X X X X X Extracts X X X X
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