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TMI Blog1978 (5) TMI 103X X X X Extracts X X X X X X X X Extracts X X X X ..... "Details of sales are as follows: Sale proceeds of bills and Christmas cards: Rs. 1,30,167.26 Non-taxable turnover claimed: Rs. 13,005.25 Receipts on advertisements: Rs. 130.00 ---------------- Rs. 1,43,302.51 Inter-State sales: Rs. 466.65 ---------------- Rs. 1,43,769.16" ---------------- It claimed exemption in respect of Rs. 13,005.25 and in respect of Rs. 466.65 representing inter-State sales. The amount of Rs. 13,005, for which exemption was claimed, was said to represent the value of work and labour supplied; and it was claimed that this was not a transaction of sale and purchase. The Sales Tax Officer noticed that the order book maintained by the assessee showed that the assessee entered only into a single contract with t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n Camera House, Bombay v. State of Maharashtra[1970] 25 S.T.C. 354., in Commissioner of Sales Tax v. Durga Khote Productions[1975] 36 S.T.C. 77., in Commissioner of Sales Tax v. Studio Ratan Batra[1975] 35 S.T.C. 522. and in Commissioner of Sales Tax v. Lettering Art[1975] 35 S.T.C. 529. We do not think it necessary to examine all those decisions in detail. By way of an example, we might refer to the decision in Camera House, Bombay v. State of Maharashtra[1970] 25 S.T.C. 354. A Division Bench of the Bombay High Court was there concerned with photographers and photographic dealers engaged in three types of business, viz., (i) preparing enlargements of photographs from the negatives given by the customers; (ii) developing customers' film rol ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... understandable. The principle of the distinction between a contract for work and labour and one of sale and purchase has been succinctly stated in Halsbury's Laws of England, 3rd Edition, Vol. 34, page 6, para. 3, as follows: "3. Contract of sale distinguished from contract for work and. labour.-A contract of sale of goods must be distinguished from a contract for work and labour. The distinction is often a fine one. A contract of sale is a contract whose main object is the transfer of the property in, and the delivery of the possession of, a chattel as a chattel to the buyer. Where the main object of work undertaken by the payee of the price is not the transfer of a chattel qua chattel, the contract is one for work and labour. The test ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the assessee. Without recording evidence about the terms of the contract, the Deputy Commissioner held that the invoice evidenced two contracts, one for the sale of goods and the other for work and labour. On appeal, the Sales Tax Tribunal differed. On reference, the High Court disagreed with the Tribunal and agreed with the Deputy Commissioner. On further appeal to the Supreme Court, it was pointed out that the conclusions of the Deputy Commissioner and the Tribunal were based on no evidence, and the High Court should not have recorded an answer on the reference. In the course of the judgment the Supreme Court observed: "The conclusions recorded by the Deputy Commissioner and the Tribunal must be held to be based on no evidence. In our ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt by the passing of title in the very goods contracted to be sold. Ultimately, it was pointed out that the nature of the contract had to be gathered from the intention of the parties to the contract. Our attention was also called to the decision of the Madras High Court in General Electric Company v. Government of Madras[1968] 21 S.T.C. 283., which followed the principle of the Supreme Court in Arun Electrics, Bombay v. Commissioner of Sales Tax, Maharashtra[1966] 17 S.T.C. 576 (S.C.)., referred to earlier; and also to the decision of this court in Sales Tax Officer, PaIghat v. Somasundaran[1974] 33 S.T.C. 68; 1973 K.L.T. 814. In the decision of this court the position was stated rather strongly. The court noticed the earlier decision in S ..... X X X X Extracts X X X X X X X X Extracts X X X X
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