9911796707
TMI Blog1992 (9) TMI 348X X X X Extracts X X X X X X X X Extracts X X X X ..... , 1976-77, 1977-78, 1978-79 and 1979-80, but involve a common dispute and therefore, are disposed of by this judgment. 3.. The background facts as described by the Tribunal in the statement of facts are to the following effect: The assessee entered into three agreements with South Eastern Railways for performance of work of supply of hard broken stone ballasts of specific size at specific depots and loading them into any type of railway wagons at specified rates. The terms of agreement were to the following effect: (a) The assessee will duly perform the work to the satisfaction of the Railway, whereupon the latter will pay to the dealer for the said works on the final completion thereof, the amount due in respect thereof at specified ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was contended that the payments received included loading and other charges and no tax was payable thereon. A letter was also produced from the railway authorities showing bifurcation of rates relating to costs of transport and other charges. The assessing officer did not rely on the letter, as according to him the agreement clearly stipulated the rates for supply and delivery in the stack (supply and delivery); loading of ballast to Railways from their depots. It was concluded that the title of the property rested with the assessee till final transfer of the goods to the Railways. It was held that the payments related to supply of goods to the Railways. Various amounts were levied as tax and penalty. The assessee questioned correctness of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... minant object of the contract was supply of chattel as a chattel. 6.. On being moved by an application under section 24(1) of the Act, the question set out above has been referred to for opinion. 7.. The learned counsel for the assessee has submitted that the approach of the Tribunal was erroneous and the transaction in question is clearly in the nature of a works contract and did not involve any supply. In the alternative it is submitted that due allowance should have been given for transport and other charges. The learned counsel for the Revenue, however, submitted that the conclusion arrived at by the Tribunal were factual and gave rise to no question of law. 8.. From the facts situation as found by the Tribunal, it is clear that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s mere transportation without any passing of title, then it would constitute labour, and the transaction would be a works contract not exigible to sales tax. On the other hand, if the right to the property vests in the assessee, then the supply of materials would certainly constitute sale. From the facts as discussed by the Tribunal we find that the price agreed to between the Railways and the assessee was a composite price for the ballast and for handling and labour charges, etc. There is, therefore, no manner of doubt that on the contract as it is worded the entire composite price becomes exigible to tax. Considering almost an identical case a similar view was expressed by the Allahabad High Court in Aruna Trading Co. v. Commissioner of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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