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TMI Blog2007 (9) TMI 549X X X X Extracts X X X X X X X X Extracts X X X X ..... ing out plots and for development of residential colonies. It has awarded contract to the contractor for construction of the houses. It has supplied cement and iron to the contractor for the purposes of utilisation in the construction of houses. Under the contract it has been provided that the cost of such cement, etc., shall be deducted in the bill of the contractor. The Trade Tax Department has treated sale of cement and iron thus supplied by the applicant to its contractor and levied sales tax on such sale. It rejected the claim of the applicant that there was no transfer of the property in favour of the contractor supplied by it to the contractor. All the three authorities below have treated the supply of building material to the cont ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Parishad Stores in good condition without ny claim for compensation on account of storage, handling or carriage, failing which the cost of the same shall be deducted from contractor's bill at double the rates for cement and one-and-a-half times for steel and other items." He further submitted that the Tribunal has wrongly placed reliance upon the judgment of the Supreme Court in the case of N.M. Goel & Co. v. Sales Tax Officer, Rajnandgaon [1989] 72 STC 368; [1990] UPTC 865 inasmuch as essential condition of the contract is at variance with that of the contract involved in the present case. In contra learned Standing Counsel submitted that the controversy in the present case stands concluded by judgment of this court in the case of C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... spat Nigam Ltd. [1998] 109 STC 425; [1998] UPTC 727; [1998] 8 SCC 439. Recently, the Supreme Court in the case of Karya Palak Engineer, C.P.W.D. v. Rajasthan Taxation Board, Ajmer [2004] 136 STC 641; [2002] UPTC 1178 has held that by use or consumption of materials supplied in the work of construction, there was passing of property and by virtue of receipt of such transferred property by way of adjustment in bill the consideration has also passed which satisfies the definition of "sale" in the Sales Tax Act. Coming to the fact of the present case it cannot be disputed that on proper construction of the term of contract the property in goods is passed to the contractor. The very opening of Schedule C which contains conditions provides that f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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