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TMI Blog2018 (3) TMI 1365X X X X Extracts X X X X X X X X Extracts X X X X ..... . to the contractors by the Government Department, for which cost is deducted from the bills of the contractors, does not amount to sale' and is it not liable to tax?" 2. The assessment was done under the U.P. Trade Tax Act, 1948 and the respondent was assessed to tax in respect of sale of imported cement, imported sheet tiles & steel and self-manufactured tiles. The Assessing Officer also assessed respondent in regard to the sale of steel scrap, sale of discarded items and tender forms. 3. In Appeal, the Appellate Authority dismissed the Appeal. Thereafter, the respondent preferred Second Appeal No. 117 of 1999 before the Trade Tax Tribunal, Dehradun. The learned Tribunal partly allowed the Appeal filed by the respondent and had sustain ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ractor was in the control of our Deptt. And the ownership of material was not transferred." 6. In the order of the Tribunal, we notice that the Tribunal has essentially placed reliance on the judgment of the Allahabad High Court dated 30.08.1978, reported in (1979) 43 STC 476, U.P. State Cement Corporation Ltd. vs. Commissioner of Sales Tax, U.P. The Tribunal has further placed reliance on the judgment of the Allahabad High Court in the case of Commissioner Trade Tax vs. M/S Silver Nest Impex reported in (2007) UPTC 1472. The latter decision was relied on for the purpose of sustaining the tax in respect of sale tax imposed on old scrap items and forms. Therefore, we need not detained by the same. As far as the judgment of Allahabad High C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... truction from the final bill of the appellant. It was found that all materials supplied to the contractors under the clause remain absolute property of the Government and could not be removed on any account from the site of the work and was at all times open to inspection by the Engineer-in-charge. The clause in fact inter alia provided that the contractor was bound to procure and to supply the material from stores as from time to time required for use of work for the purpose of contract only, and value of the full quantity of the materials and stores so supplied was specified at a rate and got set off or deducted from any sum due or that became due thereafter to the contractor. 8. It is also provided that material so supplied was to remai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ut we are unable to accept. Though, in a transaction of this type there is no inherent sale; a sale inheres from the transaction. Clause (10) read in the proper light indicates that position. 12. .......... In the instant case, by use or consumption of materials in the work of construction, there was passing of the property in the goods to the assessee from the PWD. 10. We may also notice in the U.P. Trade Tax Act that there is no dispute regarding this also. In this case, Mrs. Beena Pandey, learned Standing Counsel for the State of U.P. / respondent does not dispute that clause similar to clause-10 is there. Therefore, there is no need for us to direct that the matter to be considered, as this aspect is not considered as such by the T ..... X X X X Extracts X X X X X X X X Extracts X X X X
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