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TMI Blog1969 (9) TMI 106X X X X Extracts X X X X X X X X Extracts X X X X ..... thin the State of Bihar was found to total a sum at Rs. 66,94,568.20. This had to be deducted accordingly out of the amount of the turnover on which Central sales tax had to be levied. The amount exigible for Central sales tax was fixed at Rs. 3,85,06,702.05, making other deductions which need not be referred to. The Assistant Superintendent of Sales Tax, Central Circle (Bihar), Calcutta, held that the amount at which the Central sales tax would be payable by the dealer would be Rs. 3,79,72,677.70. According to the final return of the dealer, however, the figure stood at Rs. 3,77,05,553.62. Thus, the difference between the amount determined by the assessing authority and that of the return filed by the dealer was a sum of Rs. 2,67,124.08. The dealer claimed deduction of this amount as well on the ground that this represented the amount received from M/s. Hindustan Steel Ltd.'s iron ores in the district of Barsua in Orissa. The amount was paid to the dealer by Hindustan Steel Ltd. under an indivisible works contract and as such could not be included in the gross turnover in view of certain judicial pronouncements. The moot point between the department and the dealer, therefore, was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d on appeal by the Deputy Commissioner of Sales Tax. On revision being filed against this, however, by the assessee, the Commercial Taxes Tribunal, Bihar, by judgment dated the 18th of July, 1966, disagreed with the conclusion arrived at both by the Assistant Superintendent, Sales Tax, as also by the Deputy Commissioner of Sales Tax. According to the Tribunal, a careful scrutiny of the various terms of the agreements would lead to the conclusion that there was no independent transaction of sale in this case but that the assessee was required as part of a complete contract to supply materials as also to execute the necessary installation for which the amount stipulated in the contract had to be payable by the Hindustan Steel Limited to the assessee. 3.. The department filed an objection in the High Court praying that the court should direct the Tribunal to make a reference of the case to this court and, on an order being passed, the case was stated under section 33(3) of the Bihar Sales Tax Act, 1959, by the Tribunal. The questions formulated by this court for reference by the Tribunal stand thus: (1) Whether on a proper construction of the contract documents and other attendant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ., that switchgear was despatched from Baroda to Barsua which place is situate in Orissa. Since tax could be payable under the Central Sales Tax Act by any dealer only on the goods sold by him in the course of inter-State trade or commerce, and it shall be levied and collected in the State from which the movement of the goods commenced, the State of Bihar having no concern with the despatch of this switchgear from Baroda to Orissa, this transaction was not subject to Central sales tax. This too, therefore, was a pure question of fact and, obviously, the State of Bihar would not be entitled to impose sales tax on the sale of the switchgear. This was a simple point and did not require to be referred to the Honourable High Court and it must be held that the view of the Tribunal on this question was right. 4.. It may be stated that learned counsel for the State has not thought it fit to argue the question in regard to the switchgear despatched from Baroda to Barsua in Orissa. He has, however, argued the only question that the Tribunal was in error in thinking that the question involved in this case was a question of fact. The High Court has to draw an inference from proved facts main ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntended to result in the sale of electrical goods, which were required by the customer for his house, although there was, in addition to the said sale, further work also required to be done by the supplier of the goods in fixing the same in the house of the customer. It is not a case where we can say that by reason of the work and labour bestowed or the manner in which the work was done, the result is anything which cannot be the subject of the sale." Reference was made to the reasoning adopted by the Assistant Superintendent of Sales Tax on foot of the two agreements that "there were clear stipulations in the contract for the sale of specified equipments and their components on determined prices and in pursuance of the contract for sale, the goods were consigned and delivered to the indentor, much before these equipments were installed, for which remuneration was separately agreed to between the parties." Reference was also made to the entry in the invoices that the dealer has charged Central sales tax at the full rate of seven per cent. from the indentor. Learned Advocate-General has also referred to the factum of categorisation of the various items of articles together with th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that case a reference was also made to the decision of the Supreme Court in Peare Lal Hari Singh v. The State of Punjab[1958] 9 S.T.C. 412 (S.C.); A.I.R. 1958 S.C. 664., where also the terms were similar to those which were found in the above case of Carl Still G.m.b.H.[1961] 12 S.T.C. 449 (S.C.); A.I.R. 1961 S.C. 1615. , and it was held that the object of such recital was only to ensure that materials of the right sort were used in the construction and not to constitute a contract of purchase of the materials separation (vide page 1619 of the report). The crucial point in determining the character of such transaction laid down in that judgment was that there must be a clear contract of sale of the very goods in which eventually the property passed and not merely recital of prices etc. in an incidental manner. The Tribunal has referred to article 31 of the General Conditions of Contract providing the procedure of the final acceptance and taking over of the structures after completion of the work. This article lays down: "On completion of the completed structures and testing of each installed group of equipment the contract work shall be inspected for preliminary acceptance." It f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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