9911796707
TMI Blog1969 (7) TMI 95X X X X Extracts X X X X X X X X Extracts X X X X ..... nd fixing wooden windows and doors together with frames and painting them when the construction of the police lines building took place at a place called Pali. The respondent is an approved contractor of the Public Works Department of the State. Tenders were invited by the Chief Engineer for doing the work mentioned above in April or May, 1958. The respondent's tender being the lowest was accepted by the Executive Engineer by means of a letter dated July 17, 1958, wherein it was stated "the chowkhats will have to be supplied and fixed at site along with the masonry work". The amount which was payable for the entire work was Rs. 1,81,528. While making the assessment for the year 1959-60 the Sales Tax Officer was of the view that the total s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t availed of the statutory remedies open to him under the Act. Before the High Court the controversy was confined to a turnover of Rs. 1,81,528 only. After considering the relevant documents and other evidence the High Court came to the conclusion that "the contract in question was a single and indivisible contract for the supply and fixing of wooden doors on the spot and that this contract was given and taken for an inclusive price". It was found that the goods were not sold as movables and property in them was to pass only when the wooden chowkhats and windows etc. were fixed on the site. Counsel for the appellant urged before us that the contract was one of sale or was a combination of two distinct agreements, one for sale and purchase ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed to fix the windows in the building and to make no separate charge for that service. It was contended, inter alia, on behalf of the State in that case that the contract was for sale of windows and the turnover in respect of such sale was liable to tax. After a careful consideration of the relevant case law the test was laid down in these words: "The test in each case is whether the object of the party sought to be taxed is that the chattel as chattel passes to the other party and the services rendered in connection with the installation are under a separate contract or are incidental to that execution of the contract of sale." In that case it was held that the primary undertaking of the contractor was not merely to supply the windows bu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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