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TMI Blog1969 (9) TMI 96X X X X Extracts X X X X X X X X Extracts X X X X ..... nstruction of bridges, formation and repairs of roads etc. The turnover for the assessment year 1960-61 consists of Rs. 2,09,034.99 nP. and for the assessment year 1961-62 it consists of Rs. 1,88,811.44 nP. The assessee-firm claimed exemption from tax on this turnover contending that they are the owners of the land from which the metal was quarried and they were paying land tax on that land and that what was extracted from the land belongs to themselves and they cannot be said to be dealers in respect of the sale of metal and that the quarrying contracts were exempted from sales tax under G.O. Ms. No. 1091, Revenue, dated 10th June, 1957. This contention of the assessee-firm was not accepted both by the sales tax authorities and the Sales T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d simple, only sales of metal quarried by the assesseefirm from its own land. The question for consideration is whether those sales can be said to be the sales of goods of the category of earth work and gravel quarrying contracts. In the ordinary parlance earth work and gravel quarrying contracts cannot be goods but in the A.P. General Sales Tax Act, 1957, the term "goods" was defined under section 2(h) as follows: "'Goods' means all kinds of movable property other than actionable claims, stocks, shares and securities, and includes all materials, articles and commodities including those used or to be used in the construction, fitting out, improvement or repair of movable or immovable property; and also includes all growing crops, grass and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reason of the notification issued by the Government under section 6(1) of the Madras General Sales Tax Act, 1939. Under that notification, exemption was given with regard to sales of the class of goods specified as follows: "Earth work, laterite, metal, sand, jelly and gravel quarrying contracts." It was held in that case that what was exempted by the notification is quarrying contracts of the materials mentioned therein but not the out and out sales of those materials. Subba Rao, C.J., as he then was, who spoke for the court in that case has said thus: "It may be that the Government thought it fit to exempt contracts whereunder the lessee or other contracting party agrees to quarry materials mentioned in the notification leaving unt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o supply a certain material which had necessarily to be quarried and the present contract was a contract for supply and not a contract for quarrying. In that case the learned judges have also observed as follows: "The notification only purports to exempt quarrying contracts wherein a transfer of property Is involved. If A takes a lease of quarrying rights from the owner of the quarry B and quarries metal as a result of that contract and takes it away, it might, in a manner of speaking, be said that the lease itself involves the transfer of property in the quantity so quarried. It is quite possible that the notification may apply to such a case. It does not seem to us that this notification would apply where a person engages himself to sup ..... X X X X Extracts X X X X X X X X Extracts X X X X
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