TMI Blog1977 (7) TMI 110X X X X Extracts X X X X X X X X Extracts X X X X ..... was accepted by the defendant. There was subsequently a modification of the price to Rs. 14,10,400 and this was also agreed to. As regards sales tax, it was provided that it was to be paid for the materials including timber components but excluding all other construction materials for civil works, by reimbursement, if applicable, on production of duly certified documents by the company's auditors showing the actual payment to the Government. The defendant agreed also to furnish C forms provided under the Central Sales Tax Act for the materials and such C form declarations had also been given by the defendant. The plaintiff raised debit notes against the defendant in respect of the materials supplied under the contract and charged appropria ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ions as found in a letter from the Chief Engineer, Electricity Board, to the plaintiffcompany: "(9) The price quoted by you shall be firm in rupees till the completion of the contract except for variation in customs duty. You will not be paid any extra for other Government levies or any other taxes excepting sales tax as detailed below: (10) Sales Tax: Sales tax for materials, including timber components but excluding all other construction materials for civil works, will be reimbursed, if applicable, and on production of duly certified documents by the company's auditors showing actual payment by the company to the Government. Form C declaration may be obtained from the Paying Officer concerned wherever the concessional rate of 1 per c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... terials. It, therefore, follows that the construction and the supply of materials cannot be said to be an indivisible contract so as to be eligible for consideration as works contract in accordance with the provisions of the Sales Tax Act. At any rate, so long as there is supply of materials and so long as the amount assessed on such turnover has actually been paid and has been certified by the company's auditors as having been paid, we consider that on the terms of the contract the defence put forward by the defendant cannot be accepted as valid. If, really, the defendant is allowed to get away with the stand that has now been taken, it would be open to the civil court to go into the question as to whether the liability of the plaintiff ha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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