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TMI Blog1969 (11) TMI 68X X X X Extracts X X X X X X X X Extracts X X X X ..... dencing the bargain between the parties. While quoting for the works, the assessees sent up to the company a memo. which reads as follows: "Providing and fixing best Indian teak wood frames only for doors, windows, ventilators etc., including the cost of timber, labour charges, delivery charges etc., complete, but inclusive of the cost of clamps." This quotation was accepted by Messers Gannon Dunkerley & Co., which directed the assessees to take details from their site representative and put the work on hand. The assessees having undertaken the work, completed the same by providing doors and windows and fixing the same in the quarters pointed out by the company, and also submitted a bill which is noted by the Tribunal in their order. The b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... "This statement conclusively shows that even during the assessment year no fixing was done by the appellants." How the Tribunal has arrived at this conclusion, is not clear? But, basing their decision on the ratio of this court in Appeal No. 38 of 1945, the Tribunal came to the conclusion that the contract entered into between the petitioners and their customers is one for the supply of the wooden articles at site and not a works contract involving any elaborate work in connection with the fixing of the frames. There were other aspects also noted by the Tribunal; but they were not predominantly in respect of the contract between the petitioners and the company. As against the decision of the Tribunal, the present tax revision case has be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tle in goods; (2) that such a transfer should be for valuable consideration; and (3) that as a result of the bargain the title in the goods should pass. When in a composite contract as the one in the instant case title in the material does not pass no sooner than they are fabricated but only after they are fixed to immovable property, then one of the essential ingredients of sale is absent. Again, in the light of the facts noticed by us, the contract in question is an undissectable contract. The oneness of the contract is maintained throughout and severability of the same in any form was never intended or possible. The assessees had to fabricate the materials in accordance with the specifications. They had to fix them at the places where t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... us authorities on the subject, came to the conclusion that, as there was no transfer of movable property from one person to another for consideration and as the contract in question was incapable of being broken up and dealt with in component parts, the contract was an indivisible contract of work and not of sale, and that the assessee was, therefore, not liable to sales tax. This was approved by the Supreme Court in State of Rajasthan v. Man Industrial Corporation[1969] 24 S.T.C. 349. In that case, Shah, J., speaking for the court observed: "The contract undertaken by the respondent was to prepare the window-leaves according to the specifications and to fix them to the building. There were not two contracts-one of sale and another of serv ..... X X X X Extracts X X X X X X X X Extracts X X X X
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