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TMI Blog1992 (9) TMI 334X X X X Extracts X X X X X X X X Extracts X X X X ..... e of works contract and not supply contract. Subsequently, the Deputy Commissioner of Commercial Taxes (Admn.) initiated suo motu proceedings under section 21 of the Act and issued show cause notice to the petitioner proposing to revise the assessment on the ground that the assessing authority was not justified in allowing the exemption in respect of the turnovers relating to supply of stone ballast to the railways. The revisional authority proceeded on the ground that since the petitioner was entrusted with the collecting and stacking of ballast in a particular manner along the railway track, it would be a contract for sale of goods. Hence relying upon the Full Bench decision of this Court in H.Y. Jadhav v. State of Karnataka [1981] 48 STC ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... v. State of Karnataka [1981] 48 STC 496 is applicable in all force to the facts of this case. 4.. The question that arises for consideration is whether, on an overall consideration of the terms of contract and the actual work done by the petitioner in pursuance thereof, the transaction should be construed as a works contract, or a supply contract? 5.. A reference to some of the relevant clauses in the tender documents (including the agreement) would be necessary to appreciate the rival contentions. The tender conditions referred to are for lifting the ballast and dumping the same alone railway track. Clause 24 provides that the tenderer should quote rate both in figure and words per 10 cu.m. Clause 27 provides that the tenderer should q ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd stacking, etc." Condition No. 18 is significant, which reads thus: "Wherever there is no space for collection and stacking alongside the railway line, the tenderer/contractor shall be asked to collect and stack at convenient stacks at locations as ordered by the engineer-in-charge anywhere within the railway limits where space is available and the tenderer/contractor shall after the measurements of such stacks taken by the engineer-in-charge arrange for the ballast of such stacks to be lead out and spread alongside the main line anywhere as ordered by the engineer-in-charge without fouling the railway track. For such collection and leading out and for spreading alongside the main line, no extra payment will be made by the railway." 6. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sides of the track depending on the requirements. 2.. Collection and dumping of ballast: In this, the ballast is collected in between two telegraph posts in small stacks. This ballast is then lifted and dumped and spread on both sides of track in between the two telegraph posts depending on the requirements. The nature of work in both the cases is identical." 7.. The clarification speaks of two stages of the supply of the ballast. One is regarding collection of the ballast at the railway station and loading of the ballast into railway wagon and unloading on both sides of the track, depending upon the requirement. The second stage is lifting of the ballast and dumping and spreading on both sides of the track in between two telegraph poles ..... X X X X Extracts X X X X X X X X Extracts X X X X
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