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TMI Blog2015 (11) TMI 1427X X X X Extracts X X X X X X X X Extracts X X X X ..... 3(B) of the Act? 2. Whether on the facts and in the circumstances of the case, the respondent is right in law in holding that the appellant is not eligible for exemption under the notification, relating to the exemption of reading books? 3. Whether on the facts and in the circumstances of the case, the respondent is right in law in interfering in the order of the Appellate Assistant Commissioner, by holding that the plea taken by the appellant as regards to the claim of exemption under reading books was not tenable, when the Appellate Authority did not consider the plea, in view of his decision of granting relief by accepting the main plea viz., works contract? 4. Whether on the facts and in the circumstances of the case, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... B of the Act. Hence, the Appellate Assistant Commissioner deleted a sum of Rs. 17,66,252/- from the taxable turnover determined by the Assessing Officer and sustained the taxable turnover to the tune of Rs. 1,19,911/- towards interstate purchase of paper at Rs. 1,19,911/-. Consequently, the First Appellate Authority modified the levy of penalty. 4. Finding that the order of the Appellate Assistant Commissioner was prejudicial to the interest of the Revenue, in exercise of power under Section 34 of the Tamil Nadu General Sales Tax Act, the Joint Commissioner initiated suo motu revision by issuing show cause notice to the assessee. In response to the show cause notice issued, the assessee filed a reply stating that the receipts obtained from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee was for supply of printed materials, it is only a sale of printed materials and not as a works contract. In the circumstances, rightly the Joint Commissioner has confirmed the proposal and restored the assessment. 8. Heard learned counsel appearing for the assessee and the learned Special Government Pleader appearing for the Revenue and perused the materials placed before this Court. 9. It is seen from the assessment order herein that the assessee undertook the work of printing annual reports as per the instructions of the customers. The above items were printed for their exclusive use on works contract basis. When the predominant intention is for printing annual report as per the specification given by the customer, it is, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thstanding that a part or even the whole of the material used by him may have been his property. Where the finished product supplied to a particular customer is not a commercial commodity in the sense that it cannot be sold in the market to any other person, the transaction is only a works contract. See the observation in The Court Press Job Branch, Salem v. The State of Tamil Nadu, 54 STC 383 and Commissioner of Sales Tax, M.P. v. Ratna Fine Arts Printing Press, 56 STC 77. In our opinion, in each case the nature of the contract and the transaction must be found out. And this is possible only when the intention of the parties is found out. The fact that in the execution of a contract for work some materials are used and the property/goods s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecision of the Apex Court, which was followed by this Court in the subsequent decisions, we have no hesitation in accepting the case of the assessee that the transaction in question does not call for any liabililty under the Act. As pointed out by the Apex Court, the mere fact that in the execution of the contract for work, the paper owned by the assessee stands transferred to the contractee incidentally would not lead to the inference that the transaction is only a sale and not a works contract. 15. In such circumstances, question of law Nos.1 to 3 are answered in favour of the assessee and against the Revenue and the order of the Joint Commissioner stands set aside. In view of the decision rendered in respect of question of law Nos.1 to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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