TMI Blog1957 (10) TMI 29X X X X Extracts X X X X X X X X Extracts X X X X ..... dyed and then sold as dyed yarn. In so far as the second point is concerned there is hardly any difficulty. Under section 6(1) of the Central Provinces and Berar Sales Tax Act, 1947, no tax shall be payable under this Act on the sale of goods specified in the second column of Schedule II, subject to the conditions and exceptions, if any, set out in the corresponding entry in the third column thereof. Entry No. 20 in that Schedule is as follows: "Yarn excluding sewing and knitting thread." What the petitioners sell may be dyed yarn, but it is yarn all the same. No exception has been made in the case of dyed yarn in the sense that the yarn does not cease to be tax-free merely because it is dyed. In the circumstances, therefore, the petitione ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be based upon the decision of the Nagpur High Court in Pandit Banarsi Das v. State of Madhya Pradesh[1955] 6 S.T.C. 93.. That case was of a building contract, and as would appear from para. 26 of the order, the contract related specifically to the supply of materials and further provided for the execution of the work on these materials to produce a completed object. The learned Judges held that by reason of these circumstances the contract was partly for the supply of goods. that decision thus rested upon an entirely different set of facts from those which we have here or which were before the same learned Judges in Babulal's case(1) 4.. Shri Phadke, who appears for the petitioners, relies on the following observations in Benjamin on Sale ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Sales Tax Act to pay the tax on his turnover provided that he is a dealer. A dealer defined in section 2(c) is "a person who.....carries on.....the business of selling or supplying goods, whether for commission, remuneration etc....." Now it is common ground that none of the petitioners is carrying on the business of selling dye-stuffs. 7.. Shri Abhyankar, who appears for the department, says that the petitioners supplied dye-stuffs and chemicals which they used. It seems to us difficult to say that the petitioners, merely because they used dye-stuffs and other chemicals in the process of dyeing, could be said to be supplying these goods to the persons who handed over their yarn to them for being dyed. The work which is entrusted to t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e substance of the contract was that skill and labour should be exercised upon the production of the portrait, and that it was only ancillary to that contract that there would pass from the artist to his customer some materials, namely, the paint and the canvas, in addition to the skill and labour involved in the production of the portrait. It seems to us that this decision is pertinent and would apply to the circumstances present in the instant case. 9.. We may also refer to two decisions of the former Board of Revenue in Rajasthan Printing and Litho Works, Akola, In re [1952] 3 S.T.C. 62; 1951 N.L.J. 613. and Chauthmal Champalal v. State [1952] 3 S.T.C. 245; 1952 N.L.J. 342. which following the decision in Dominion Press Limited v. Mini ..... X X X X Extracts X X X X X X X X Extracts X X X X
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