9911796707
TMI Blog1968 (7) TMI 74X X X X Extracts X X X X X X X X Extracts X X X X ..... ings for the assessment years 1958-59, 1960-61, 1961-62 and 1962-63 the Sales Tax Officer assessed the petitioner to sales tax upon the turnover of the ballast and boulders. In appeal by the petitioner the Judge (Appeals) Sales Tax confirmed the assessment in respect of ballast and boulders. The petitioner proceeded in revision before the Judge (Revisions) Sales Tax but was also unsuccessful there. At the instance of the petitioner the following question of law has been referred in the instant case for the opinion of this Court: "Whether in the circumstances of the case and under the terms of the contract between the applicant and the North Eastern Railway the supply of ballast was a sale or amounted to a works contract?" In the connected ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed containing the ballast and boulders belonged to the Forest Department. The dealer paid royalty to the Forest Department for the right to collect and remove them. They were cut down to size and shaped to conform to certain specifications and then transported to the railway sidings. Payment was to be made only on measurement. We are referred by the learned counsel for the dealer to paragraph 14 of the Special Conditions of Contract. Paragraph 14 is set out hereunder: "If any quantity of quarry product is left surplus in the quarry after completion of the full supply in terms of the agreement, it will be considered as the property of the N.E. Railway and, if required, may be taken over at the rate which will be fixed for it by the Chief En ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... property of the Railway there would have been no occasion for providing for payment to the petitioner in respect of the surplus taken over by the Railway. There would also have been no necessity for adding the further condition that if the material was not removed by the petitioner within two months from the date of service of a requisition by the Railway the petitioner would forfeit all right, claim and interest in the same. We are not satisfied that the finding of the Judge (Revisions) Sales Tax is erroneous in law and accordingly, we hold that this is not a case of a works contract but of a sale of the ballast and boulders by the petitioner to the Railway. We answer the questions of law in all the references accordingly. The Commissione ..... X X X X Extracts X X X X X X X X Extracts X X X X
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