TMI Blog2013 (2) TMI 232X X X X Extracts X X X X X X X X Extracts X X X X ..... C.I.T. [2004 (3) TMI 11 - BOMBAY HIGH COURT ] held that if a manufacturer purchases material on his own and manufactures a product as per the specific requirement of a customer, it is a case of sale and not a contract for carrying out any work. Thus no infirmity in the order of the CIT(A) wherein printing of question papers by the assessee from printers was treated as contract for sale and not work contract and therefore, outside the purview of section 194C - in favour of assessee. - ITA No.5349, 5350, 5351 & 5352/Del/2012 - - - Dated:- 4-1-2013 - Rajpal Yadav and Shamim Yahya, JJ. Appellant Rep by: Shri M.L. Kataria, Adv. Respondent Rep by: Shri Bhim Singh, DR ORDER Per: Bench: These appeals by the Revenue are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing payments, appointments of paper setters etc. shall be kept to secret and no one shall be allowed to have access on the record related to it. The assessee further contended in the said reply filed stating that No tax will be deducted from your bill keeping in view the secrecy. While receiving payment you will have to furnish an affidavit on a stamp paper worth Rs. 10/- to the effect that the amount received from the Board has been entered in your account book and will be shown in the Income Tax Return. The assessee has pointed out that not disclosing the names of such concerns is also being adopted by some other Board / Universities to maintain the secrecy. The Assessing Officer opined that submissions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the account of the contractor or at the time of payment thereof in cash etc., deduct an amount equivalent to 1% or 2%, as the case may be. Work has been defined in the Explanation to the such section as under:- (iv) "work" shall include- (a) advertising; (b) broadcasting and telecasting including production of programmes for such broadcasting or telecasting; (c) carriage of goods or passengers by any mode of transport other than by railways; (d) catering; (e) manufacturing or supplying a product according to the requirement or specification of a customer by using material purchased from such customer, but does not include manufacturing or supplying a product according to the r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m of the assessee that setting of question papers and printing thereof was got done by the Board in a very confidential manner for which a specific provision exists in the examination regulation of the Board. Assessee further pleaded that several of the Examination Bodies like Punjab University, Punjab School Education Board and Himachal Pradesh School Education Board etc. follow the same method, in order to maintain the secrecy and sanctity of the process involved in the setting and printing of question papers. It has further been contended that liability to pay tax always remains with the confidential printers only. In order to ensure and to safeguard the interest of revenue, an affidavit from the printer is obtained and placed on record ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o the requirement or specification of a customer by using material purchased from a person, other than such customer. 6.2 On examining the present case on the touchstone of the above definition, we find that the material used for printing the question papers in this case is procured by the printer himself as per the specifications laid down by the assessee. The purchase of pre-printed material from the printer therefore amounts to contract for sale and not work as defined in section 194C(1). 6.3 We further note that Hon ble Punjab and Haryana High Court in the case of C.I.T. vs. Dy. CAO, Markfed (Supra) held that purchase of particular printed packing material by the assessee was a contract for sale and outside the purview of section ..... X X X X Extracts X X X X X X X X Extracts X X X X
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