1989 (1) TMI 359 - SUPREME COURT

Whether the taxable turnover should also include the printing and block-making charges or not?

Held that:- Appeal dismissed. The contract in this case is one, having regard to the nature of the job to be done and the confidence reposed, for work to be done for remuneration and supply of paper was just incidental. Hence, the entire price for the printed question papers would have been entitled to be excluded from the taxable turnover, but since in the instant case the demand notes prepared by the assessee showed the costs of paper separately, it appears that it has treated the supply of paper separately.

Except the materials supplied on the basis of such contract, the contract will continue to be a contract for work and labour and no liability to sales tax would arise in respect thereof. The High Court was, therefore, right in the view it took.