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TMI Blog2009 (7) TMI 1160X X X X Extracts X X X X X X X X Extracts X X X X ..... lved in the Execution of Works Contracts (Re-enacted) Act, 1989? Held that:- Since the property in the goods (material used for production of innerflange) by the respondent in the execution of the contract of converting the steel plates into an assembly-flange is transferred to Telco, it would undoubtedly amount to a sale as held by the Tribunal. We see no error in the view taken by the Tribunal. The question as framed would not arise. Consequently, we decline the application. - Sales Tax Application No. 12 of 2006 - - - Dated:- 29-7-2009 - REBELLO F.I. AND KARNIK D.G. , JJ. The judgment of the court was delivered by D.G. KARNIK J. By this application under section 61 of the Bombay Sales Tax Act, 1959 (for short, the Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rsion charges in its books of account. First appeals filed by the respondent were dismissed. Aggrieved, the respondent filed second appeals before the Maharashtra Sales Tax Tribunal (for short, the Tribunal ). By the order dated September 26, 2003, the Tribunal allowed the appeals filed by the respondent holding that the respondent was not liable to pay sales tax on the conversion charges on the works contracts executed by it. Aggrieved by the order, the appellant filed an application to the Tribunal for reference of the aforementioned questions of law. On rejection of the application by the Tribunal, the applicant has approached this court for an order directing the reference to be made. The main dispute between the parties revolve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l the material available before it held that the imported steel plates which form the main raw material for the assembly-flange is supplied by Telco. A job-work is performed by the respondent on the steel plates supplied by Telco so as to convert the steel plates into an auto part called assemblyflange. While doing the job-work on the steel plates resulting in production of assembly-flange, some material belonging to the respondent is attached to the goods of Telco to produce the assembly-flange. The assembly-flange is delivered to Telco. In so delivering the property of the respondent in some materials used for the manufacture of inner-flange is attached to the outer-flange and passes on to the Telco. The Tribunal held that the passing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erty in Goods involved in the Execution of Works Contracts (Re-enacted) Act, 1989 (Maharashtra Act No. XXXVI of 1989) (hereinafter referred to as, the Works Contract Act ). Section 2(l) of the Works Contract Act defines sale for the purpose of the Works Contract Act as follows: 'sale' means a transfer of property in goods (whether as goods or in some other form) involved in the execution of a works contract in the State, and the word 'sell' with all its grammatical variation and cognate expressions shall be construed accordingly; Section 6 of the Works Contract Act levies a tax on turnover of sales. Obviously, the word sale used in section 6 relates to the definition of sale appearing in section 2(l) of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gnate expressions, shall be construed accordingly. Explanation. For the purposes of this clause (a) a sale within the State includes a sale determined to be inside the State in accordance with the principles formulated in sub-section (2) of section 4 of the Central Sales Tax Act, 1956; (b)(i) every disposal of goods referred to in the Explanation to clause (11); (ii) a delivery of goods on hire-purchase or any system of payment by instalments; (iii) the supply, by way of or as part of any service or in any other manner whatsoever, of goods, being food or any other article for human consumption or any drink (whether or not intoxicating), where such supply or service is made or given on or after the February 2, 1983, for cas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... om indigenous and overseas sources at actual invoice plus all other charges which HAL had to pay plus five per cent. As required by the Defence audit, labour charges and material charges were shown separately by the HAL. The question before the court was whether the money value of the spare parts of the aircrafts which the appellant had supplied to the Air Force as a result of their use in the process of repairing, servicing and overhauling the aircraft, could be subjected to sales tax. The Tribunal as well as the High Court held that the sale of spare parts was clearly in contemplation of the parties and attracted sales tax. Reversing the decision of the High Court, the Supreme Court held that the contract between the parties was to accomp ..... X X X X Extracts X X X X X X X X Extracts X X X X
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