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TMI Blog2006 (11) TMI 599X X X X Extracts X X X X X X X X Extracts X X X X ..... y part of the consideration as per the consolidated bills consisting of various components ultimately resulting in advertisement material amounts to consideration for 'goods within the meaning of that term under the Act? 3.. Without prejudice and in the alternative and on the facts and in the circumstances of the case whether that part of the consideration in the consolidated bill relating to the activities up to the stage of emergence of the prototype/design is liable to tax under the Act? 4.. Whether, on the facts and in the circumstances of the case, the order of the authority in annexure A was amenable to rectification? The appellant is an advertising agency engaged in providing its expertise services to the customers. A su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er contra, Smt. S. Sujatha, learned Additional Government Advocate, appearing for the Revenue, after referring to the impugned order, would argue that no case is made out by the appellant. According to her, the matter is covered by three judgments. She wants to follow the law laid down by the Supreme Court in the decisions reported in Associated Cement Companies Ltd. v. Commissioner of Customs [2001] 124 STC 59, Tata Consultancy Services v. State of Andhra Pradesh [2004] 137 STC 620 and Bharat Sanchar Nigam Ltd. v. Union of India [2006] 145 STC 91. After hearing, we have carefully perused the material on record. From the material on record, it is seen that the appellant has chosen to enter into contracts with its clients in the matter of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s under: 24. In our view, the term 'goods' as used in article 366(12) of the Constitution of India and as defined under the said Act are very wide and include all types of moveable properties, whether those properties be tangible or intangible. We are in complete agreement with the observations made by this court in Associated Cement Companies Ltd. [2001] 124 STC 59; [2001] 4 SCC 593. A software programme may consist of various commands, which enable the computer to perform a designated task. The copyright in that programme may remain with the originator of the programme. But the moment copies are made and marketed, it becomes goods, which are susceptible to sales tax. Even intellectual property, once it is put on to a media, wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ments stated supra, what is clear to us is that the service rendered by the appellant is an indivisible activity and liable to levy of tax. The authority in annexure A, after noticing the material facts, has chosen to hold that in the bills there is separate charge made as content development concept, design, photography scanning and other charges such as system charges including colour sketch pen or computer used design software, etc. Ultimately, the brochures come out. Considering the entire ambit of activity of the dealer, it is seen that it is a comprehensive contract for supply of printed material developed by the company. The bills also indicate the entire activity tantamounts to making indivisible contract in a divisible contract . ..... X X X X Extracts X X X X X X X X Extracts X X X X
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