TMI Blog1968 (9) TMI 96X X X X Extracts X X X X X X X X Extracts X X X X ..... s that there was a sale by the respondent to the railway administration of stone ballasts of the value of Rs. 1,62,470, and other materials in respect of another contract of the value of Rs. 2,525. There were two contracts which were entered into between the respondent and the railway administration. The one related to the construction of buildings and other connected works, and the other to the collection and training out of stone ballasts. The aggregate sum of money paid by the railway administration to the respondent was Rs. 3,45,914. From this sum of money a sum of Rs. 1,53,147 which represented the amount paid to the respondent for the building construction and a sum of Rs. 27,772 for the training out operations, amounting in the aggre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t with which we are concerned was a contract for collection and "training out" of stone ballasts. Under the contract between the railway administration and the respondent it was the duty of the respondent to prepare stone ballasts from boulders for collecting which he had to carry on quarrying operation. That was the process by which stone ballasts could be brought into existence by the respondent and it was that work which was entrusted to him by the railway administration. The other work which the respondent had to do for the railway administration was what is described as "training out". This training out operation which the respondent agreed to do consisted of the spreading of the stone ballasts collected by him, on either side of the r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s and after bringing them into existence in that way to spread them along the railway track on both sides of it along a particular stretch. It is this work which was entrusted to him by the railway administration for which it agreed to pay him a consolidated remuneration. That remuneration could not be claimed by the respondent before he did the training out operation, and that operation which formed part of the work which he undertook to do, consisted of the arrangement of the ballasts collected by him in the desired form on both sides of the railway line. Although one part of the assessment order of the Commercial Tax Officer makes it appear that he was of the opinion that the training out operation was no more than a mere act of transp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Commercial Tax Officer to identify any particular portion of the remuneration which the railway administration agreed to pay to the respondent as the price of stone ballasts. Moreover it is clear from the terms of the contract and its nature that it was not the intention of the parties that there should be a sale of the stone ballasts to the railway administration by the respondent. This is a case to which the enunciation made by this court in C.R.P. No. 442 of 1961 clearly applies in the same manner in which the elucidation made in S.T.R.P. No. 12 of 1966* does. What was explained by this court in S.T.R.P. No. 12 of 1966* was that an indivisible contract such as the one with which we are concerned in this case in which there is no sti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ectness of the said view. The contracts, extracts from which have been given in the judgment of the Appellate Tribunal, leave no room for doubt that the contracts were contracts to carry out road repair works. There is nothing in the contracts themselves nor in the certification by the engineering staff of the Government regarding the completion of works to suggest that the contract was anything but a contract of work and labour. The only circumstance on the basis of which the Sales Tax Appellate Tribunal confirmed the opinion of the lower authorities is that in the list of estimates preceding the execution of the contracts, there were such items as "collecting, conveying, breaking and stacking 1 " granite metal", and "collecting, conveyi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rities to show that the title to the metal which originally vested in the contractor passed to the Government, the other party to the contract, at any time before the same was actually spread on the road and consolidated and therefore converted into immovable property by imbedding the same in the earth. The order of the Sales Tax Appellate Tribunal as well as the orders of the two appellate authorities are hereby set aside. As the only amount in respect of which sales tax has been imposed is the amount estimated to be the value of granite metal, this order will result in the setting aside of the entire assessment. The assessee will have his costs in this revision petition. Advocate's fee Rs. 100. - - TaxTMI - TMITax - CST, VAT & S ..... X X X X Extracts X X X X X X X X Extracts X X X X
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