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2010 (4) TMI 969 - HC - VAT and Sales TaxWhether the items mentioned in the entry did not involve a simple sale of goods? Held that:- It is possible that during festival times, a purchaser may place orders for 1000 diaries or 1000 address books which are readily available with the supplier. Since these address books or diaries will be distributed to the customers for Deepavali or New Year, the purchaser might ask the supplier to print his name or affix the label. Then the mere fact that the labels have been printed bearing the name of the particular customer will not make it a works contract. It is obvious that a diary bearing the name 'XYZ Limited' cannot be sold to anyone else, but when the supplier has stocks of diaries where he merely prints 'XYZ Limited' or 'ABC Limited' and gives them to his customers, that printing will not turn the transaction into a works contract. It is purely and simply a sale of goods. Here, the printing of the logo is incidental to the sale and the transaction between the supplier and the purchaser is not work charged. The fact that the Legislature has introduced the additional word in Entry-40 will not change the position of law in any manner. The authorities will have to examine each transaction and look at the contract in question and decide whether it is works contract or whether it is only a sale. The mere fact of bearing the logo or name upto the specification to the customer's will not make it a works contract.
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