1964 (8) TMI 54

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..... t charges and translation charges". The amount so added came to Rs. 14,650-92. The assessee appealed to the Sales Tax Appellate Tribunal, Madras, disputing this addition. His contention was that for the customers, who came to him for advice in the matter of advertisement, he supplied ideas and sketches and also words to be used for advertisement purposes. Thereafter the nature of the design of the advertisement was settled between the customer and the assessee. If the customer so required, the assessee also placed an order in accordance with the design with the block-maker on the agreement that the price charged by the block-maker for making the block would be passed on to the customer together with a commission of 15 per cent. It was in th .....

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..... with the price of the block. The learned Government Pleader also draws our attention to a decision of this Court reported in T.V.S. Sarma Studio v. State of Madras[1963] 14 S.T.C. 784. In that case a firm of advertisers supplied designs to the customers and charged them for such designs. The customers did not entrust the making of blocks to the advertisers but took back the designs and made their own arrangements for the making of the blocks. A Bench of this Court held that charges for making such designs for advertisement purposes should not be assessed to sales tax. The learned Government Pleader seeks to make a distinction in this case in so far as the assessee himself arranged for the making of the blocks. The learned counsel appearing .....

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..... poses, and the agreement to get the block itself made by the assessee on behalf of the customer to save further trouble to the customer to select a block-maker himself. That the assessee was prepared to do this extra service for the customer, instead of leaving it to him to get the block prepared on the basis of the design should, in our opinion, not make any difference. It would also not justify the integration of the two contracts into a single contract for the value of goods supplied. It is also not proper to deal with the advertisement and translation charges as pre-sale charges, which was the view which the department chose to accept. In our opinion, the circumstances clearly make out a contract for art and translation charges distinct .....

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