1991 (7) TMI 321

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..... . 5,10,790, respectively. Subsequently they wrote a letter on July 12, 1979, claiming exemption on a turnover of Rs. 14,35,770 representing the value of supply of machinery to M/s. Bharat Heavy Electricals Ltd., Trichy, as being a works contract. This. claim was rejected by the assessing authority, the appellate authority as well as by the Tribunal. It is against such concurrent findings that the .....

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..... components to be supplied as free issue by the contractee. XVI. INSPECTION: The inspection of the components will be carried out by contractee's inspector or by contractee's authorised inspection agency at contractor's works. All facilities, equipments and instruments required for inspection shall be provided by the contractor free of cost. Contractee's representative shall have free access to t .....

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..... s that all the raw materials required as per the part list and drawings, will be procured by the contractor at the contractor's cost including five items of special raw material except supply of certain free items by the contractee. There is clear indication as to the value of the items to be supplied free of cost by the contractee. This is seen from the letter dated October 28, 1977, addressed by .....

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..... ct. It is clearly a sale of goods attracting liability to tax under the Tamil Nadu General Sales Tax Act. To make matters worse for the assessee the judgment of the Supreme Court in Union of India v. Central India Machinery Manufacturing Co. Ltd. [1977] 40 STC 246, deals with an identical case of free supply of small portion of component by the railways. The following observations of the Apex Cou .....

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..... ound on the facts of the case that printing of question papers was an extremely confidential matter and such printing could not be entrusted to any and every press. The value paid for such printing includes the paper, technical and professional work as well as the confidence and faith reposed on the assessee. In our view that decision does not help the petitioner in this case. For what we have st .....

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