1967 (10) TMI 56

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..... d of Revenue. In cases like this, as has been pointed out by this Court on more occasions than one, the primary task is one of construction of the contract, as to whether the terms read as a whole disclose an intention to sell and purchase goods as such. In construing the contract, it will naturally be borne in mind how and when the property passes in the process of execution of the contract and how the risk in relation to the property is borne and by whom. The original contract is unfortunately not before us. But the learned counsel for the assessee produces a copy of a contract and says that the terms therein are similar to those in the contract has been entered into between the Neyveli Lignite Corporation on the one hand and the assessee .....

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..... s explicit that the assessee was only utilised to do the work. The Board of Revenue did not accept that view and considered that it was equally explicit that the assessee on payment therefor quarried at the licensed site, collected the pebbles and delivered the same to the Corporation as pebbles and thus the transaction was a sale of goods. Before us, it has been argued for the assessee that the quarrying licence being in favour of the Corporation exclusively, the assessee acquired no property in the pebbles at any time and that the payment made to him was for quarrying, in other words, for the work and labour. The whole argument is rested on passing of property. The short answer to this is that, if it was a case of pure work and labour, .....

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..... ain company under a contract. The assessee was to take earth free of cost from land belonging to the company and manufacture bricks out of it and supply the same. The Supreme Court held that under the contract there was a transfer of property in the earth to the assessee, that though the contract itself did not mention sale, there was also a transfer of property in the bricks from the assessee to the company for consideration and that therefore the transaction was a sale of goods. In the instant case too, as we already noticed, there is a specific stipulation for payment by the assessee and recovery from his bills of the seigniorage fee which the Corporation was liable to pay to the Revenue Department for quarrying the pebbles in the licens .....

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