9911796707
TMI Blog1971 (3) TMI 104X X X X Extracts X X X X X X X X Extracts X X X X ..... uses the photographic goods as raw material for manufacture of other goods for sale. When he buys the goods outside the State of Madhya Pradesh he gives a declaration that he will either resell the goods or use them as raw material for manufacture of other goods for sale. He thus gets a concession in respect of sales tax under the Central Sales Tax Act on his purchases. After getting those goods he either sells them to his customers here or uses them in three ways-(1) by taking photographs and supplying prints thereof, (2) by making enlargements for customers who bring their own negatives, and (3) by simply preparing positive prints of the same size from the negatives brought by the customers. For doing all these kinds of works he charges a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n taking a photograph, preparing its negative and then preparing the final positive print for supplying the same to the customer, the petitioner undertakes a contract of work and labour and does not enter into a sale transaction. The customer does not come to the studio to buy the printed paper but to utilise the skill of the photographer to get a good photo prepared. The petitioner has also contended that the prepared positive print is not a marketable commodity and he cannot sell the photo of one person to any other person except with the former's consent. His claim, therefore, is that this item for each period has been wrongly taxed. 4.. In reply a preliminary objection has been taken that appeals under the Madhya Pradesh General Sales ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ry. Take for instance, when a customer takes a shoe or a suit he takes it for its use as such; but when a client takes a paper from a lawyer on which the latter has written out his opinion on a legal matter or has drawn up a pleading or a document, the client does not take the paper as such but takes it only as a vehicle of the lawyer's labour and ideas. These are extreme illustrations which easily fall into one or the other class. But cases may be on a border line that may require considerable thought for deciding to which class a particular contract belongs. To this end some other criteria may also be applied as aids to come to a conclusion. Another way of looking at such contracts would be to see whether the article prepared is a marketa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... like a modern camera and chemical processes like developers are used therein, cannot, to our mind, make any difference to the nature of the contract. For instance, in the Jariwala case(1), it certainly would not matter whether the embroidery was done with a simple needle or with a complicated embroidery machine. To this extent we are unable to agree with the reasoning of the Patna High Court in M. Ghosh v. State of Bihar [1961] 12 S.T.C. 154., and, with respect, agree on this point with the Bombay High Court in Camera House v. State of Maharashtra[1970] 25 S.T.C. 354. By the way, we also agree with the criticism by the Bombay High Court of the ratio of the Madras case, B.V. Bhatta v. State of Madras[1965] 16 S.T.C. 441., in the Camera Hous ..... X X X X Extracts X X X X X X X X Extracts X X X X
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