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TMI Blog1998 (8) TMI 562X X X X Extracts X X X X X X X X Extracts X X X X ..... , the Tribunal considering the agreement between the assessee and the Hemadri Cements Limited held as follows: As seen from the terms of the contract the appellant had no control over the process of production and had no ownership in the goods before they were certified in inspection and delivered to it. The fact that appellant had reserved the right to reject the goods on inspection was just a privilege of the bulk purchaser. But the transaction intrinsically remains one of purchase of cement by appellant from HCL. Such being the case, HCL is the first seller within the State and duly entitled for the concessional rate contemplated by the State Government for a mini cement plant. The appellant being the major buyer from such a mini ce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of this agreement, HCL shall forthwith discontinue the use of ACC s registered trade mark or any other trade mark or brand name which indicates any association with ACC. 4.0: ACC agrees to supply bags of acceptable quality duly branded with ACC logo. HCL will pack their cement sold to ACC in bags supplied by ACC and despatch as per ACC s programme. HCL will be accountable for the total number of bags supplied. ACC will accept burstage on actuals up to 1.50 per cent of the total bags supplied by ACC. 19.0: ACC reserves the right to advise HCL to quote against tenders of Government departments and such organised sectors who get the benefit of concessional sales tax and where the offer is to be made directly by HCL for availing the conce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oting the prices without the consent of ACC in respect of tenders of Government departments and organised sectors. Clause 19 also provides that in case the HCL sells the cement manufactured by it to the customers, if there is any difference in price between the price at which the HCL sold the cement to its customers and the price at which the assessee sold and if the difference is on higher side, the said amount is to be credited to the account of the assessee. 5.. In our view, a reading of the above three clauses does not establish that the cement manufactured by HCL and supplied to the assessee amounts to the manufacturing of the cement on job-work basis by HCL on behalf of the assessee. The agreement does not provide that the raw mater ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s not the case of the Revenue that the raw material is supplied to HCL for the purpose of manufacturing the cement on behalf of the assessee. 6.. Reliance placed by the learned counsel for the Revenue on a decision of a Division Bench of this Court in Hindustan Shipyard Ltd. v. State of Andhra Pradesh [1997] 106 STC 387; (1997) 25 APSTJ 9, is misplaced. It is a case where M/s. Hindustan Shipyard Limited entered into an agreement with certain owners for the construction of vessels according to rate specifications. According to the terms of the agreement, the customer after finalising the drawings, if pays a part of the consideration, he is declared as owner of the vessel to be constructed. M/s. Hindustan Shipyard Limited purchased the mate ..... X X X X Extracts X X X X X X X X Extracts X X X X
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