9911796707
TMI Blog1975 (9) TMI 162X X X X Extracts X X X X X X X X Extracts X X X X ..... ts chief place of business at 59, Gray Street, Calcutta-6. The business of the firm was started on 1st January, 1964. The nature of the petitioner's business is of (i) executing individual works contract, viz., galvanization of steel works supplied and belonging to the customers, (ii) manufacturing in West Bengal for sale of engineering goods, e.g., fabricated steel structures and galvanized materials, and (iii) executing pure and simple labour contract. A sales turnover of Rs. 46,377.47 effected during the period from 1st April, 1965, to 23rd March, 1966, was shown in the application for registration filed under the Act on 23rd March, 1966. In compliance with a notice under section 14(1) of the Act, the petitioner-firm produced before the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mmissioner of Commercial Taxes. It was contended before him that (1) in some cases, the railways supplied steel and zinc which were galvanized by the petitioner, i.e., the entire materials for fabrication were supplied by the railways and the petitioner only executed labour contract, (2) in some other cases, the railways supplied steel and the petitioner themselves supplied their own zinc with which they did the fabrication and (3) in some other cases, the petitioner had made pure and simple sales of goods. The Additional Commissioner found that so far as the second category was concerned, the materials were supplied by the petitioner, so the transaction under that category was rightly considered as involving sales of materials and, accordi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orty on three decisions of the Supreme Court: Government of Andhra Pradesh v. Guntur Tobaccos Limited[1965] 16 S.T.C. 240 (S.C.)., State of Gujarat v. Kailash Engineering Company (Pvt.) Ltd.[1967] 19 S.T.C. 13 (S.C.). and State of Madras v. Richardson Cruddas Limited[1968] 21 S.T.C. 245 (S.C.). Mr. Mukherjee, appearing on behalf of the revenue, contended that the petitioner was producing a distinct item for sale, namely, galvanized materials, amongst others, as declared in form 1(B) and galvanization made by the petitioner with their own zinc should be held as sales of goods and assessed to sales tax. Mr. Mukherjee drew my attention to some of the relevant clauses in the agreement and contended that raw materials, namely, fabricated por ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The contractor shall not except to the extent specifically agreed to by the railway in the acceptance of tender, be entitled to assistance in the procurement of zinc sphalerites only (by way of quota certificate) required for due fulfilment of the contract. Payment for galvanization of steel work will be made for the net estimated black weights of portals and allied steel works. The railway will arrange for supply of all fabricated portals and allied steel works to the contractor's workshop and will also arrange for transporting the galvanized steel sheets from the contractor's works, but loading of these finished materials to railways or its appointed agents shall be done by the contractor for which no separate payment will be made. Re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the first or of the second class must depend upon the circumstances if it is of the first, it is a composite contract for work and sale of goods where it is of the second category, it is a contract for execution of work not involving sale of goods. In State of Gujarat v. Kailash Engineering Co. (P.) Ltd.[1967] 19 S.T.C. 13 (S.C.)., the respondent, an engineering concern, constructed three coaches over the chassis supplied by the western railway administration under a contract with the latter and received money therefor. It was provided in the contract that as soon as the plant and materials were brought on the site where the coaches were to be constructed, the ownership in them would vest in the railway. The coach bodies were not separa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pecial requirements of the customer and to instal the unit in the premises of the customer. The Supreme Court held, on the facts, that the contract being one for supplying for an inclusive price a specially designed fabricated unit to be assembled and installed by specially trained technicians in the premises of the customer, it was not a contract for sale of a unit or different parts of the unit as specific goods, but was a works contract. It is abundantly clear from the contract that the property in the goods, viz., raw steel portals were all along remained with the railway authorities. A contract of sale is a contract whose main object is the transfer of property in goods and delivery of the possession of the said goods to the buyer. I ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
