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TMI Blog1983 (10) TMI 228X X X X Extracts X X X X X X X X Extracts X X X X ..... nished article will be liable to sales tax?" 2.. The facts in brief giving rise to this reference may be stated thus The non-applicant M/s. Ratna Fine Arts Printing Press, the owner of a printing press was assessed to tax by the Assistant Sales Tax Officer, Ujjain, for the period from 1st April, 1968, to 31st March, 1969, by his order dated 20th May, 1970. The gross turnover was determined at Rs. 18,000. The taxable turnover was also determined at the same figure and a sum of Rs. 1,260 was assessed as tax payable by the assessee. A penalty of Rs. 100 was imposed under section 17(3) of the Act and a penalty of Rs. 15 was also imposed under rule 69-A. In the first appeal by the assessee before the Appellate Assistant Commissioner of Sales T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the transfer of chattel is only ancillary, then it is an agreement of work and labour rather than of purchasing an article because the customer while placing an order for photograph is not making a contract to purchase the paper on which the photograph is impressed as such, but it comes to him merely as ancillary to the main contract of work and labour. Similary in Rubber Stamp Works v. Deputy Commissioner of Sales Tax, Raipur [1979] 43 STC 335 another Division Bench of this Court, while dealing with the case of manufacturer of rubber stamps took, the view that when a manufacturer of rubber stamps obtains an order from a customer to prepare a particular rubber stamp to be made specially for the customer, the sale is not of the rubber stamp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... articular customer. 6.. It is settled view that if the substance of the contract is that skill and labour have to be exercised for the production of the articles and it is only ancillary to that that there will pass from the artist to his client or customer some material in addition of the skill involved in the production of the article that does not make any difference to the result because the substance of the contract is the skill and experience of the artist in producing the article. Having regard to these principles, it may be said that the principal object of the work undertaken by the owner of a printing press is not the transfer of the material on which the printing work as desired by a customer is done, but the contract is one of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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