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TMI Blog1970 (4) TMI 127X X X X Extracts X X X X X X X X Extracts X X X X ..... ed to as "the Act"). The sole question that arose for decision in those references was whether the transactions referred to in those references are "sales" within the meaning of the Madhya Pradesh General Sales Tax Act, 1958, or whether they were merely works contracts. The High Court has opined that they were works contracts and as such the turnovers relating to those transactions are not liable to be taxed under the Act. The facts material for the purpose of deciding these appeals are: The assessee entered into two contracts with the S.E. Railway for breaking stones and supplying ballast. Under the first contract he was to break stones into ballast and supply approximately 60,00,000 cubic feet of ballast at Rs. 27-6-0 per cubic foot. U ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ereafter supply them to the S.E. Railway. Prima facie, the S.E. Railway was the owner of the ballast. The assessee's duty was only to do some work on the stones belonging to the S.E. Railway administration. Hence it is difficult to accept the contention of the sales tax authorities that the transactions in question are sales within the meaning of section 2(n) of the Act. Section 2(n) reads: "'Sale' with all its grammatical variations and cognate expressions means any transfer of property in goods for cash or deferred payment or for other valuable consideration and includes a transfer of property in goods involved in the supply or distribution of goods by a society or club or any association to its members, but does not include a mortgage, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... greement or not shall be quarried and/or collected from land belonging to or held by the railway or any land under that held by the railway. If and when the contractor quarries and/or collects materials from or from under railway land for the purpose of supply of materials and/or of work under this agreement he shall be liable to pay a royalty at the flat rates hereinafter set out. Such royalty shall be recovered by the deduction from the contractor's bill for the supply of materials and/or work done under this agreement or from any other sum due to him from the railway." The fact that the railway had provided in the agreement that the assessee shall pay the royalty due to the State Government does not in any manner detract from the legal ..... X X X X Extracts X X X X X X X X Extracts X X X X
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