TMI Blog2020 (2) TMI 747X X X X Extracts X X X X X X X X Extracts X X X X ..... as the goods are supplied to a particular institution on specific orders and as such are not utilised in the course of business of the Assessee for sale otherwise and the property in question stands transferred to the customer as per the specification of the customer and that the specific works contract has been carried out by the Assesee complying with the specific orders and, therefore, the same clearly falls under the Section 3(B) of the TNGST Act, 1959, falling within the charging provision of Section 3 of the Act. The order of the Revisional authority is liable to be set aside - appeal allowed - decided in favor of appellant. - T.C.(A).No.732 of 2006 - - - Dated:- 10-2-2020 - Dr. Justice Vineet Kothari And Mr. Justice R. Suresh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... there is a market for the articles. In the scheme of taxation, the sale of goods mentioned in First Schedule has to be taxed straightaway with reference to the section 3 (2) of the Act. No works contract is involved when the printed materials are manufactured out of their own materials and sold by the dealers. Tamilnadu Taxation Special Tribunal has held in various cases that printed materials are liable to tax as sales of goods as could be seen from the decisions cited below:- 1.Tvl.P.Munirathnam Naidu Sons, Vellore Vs. State of Tamilnadu ((TC (R)No.434 and 435/97 dated 9.4.1999) 2. The South Arcot Cooperative printing works Limited (TC (A)no.298/97 dated 1.9.1999) 3. Tvl. Rukmani offset Press (TC (R)No.3203/3204/97 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppellants) is providing Vocational Training to rural youth and women in printing, binding, composing and tailoring under the auspicious of governmental organizations like DRDA DIC etc., A perusal of the purchase bills revealed all the materials were tax suffered. Eventhough it is printing contract the predominant role is only work of labour. The materials are suitable for the specific customer and it is not suitable for general purpose. Therefore applying the principles of Gunasundari case to this case, the goods were not utilized for general purpose and it is for the individual customer and therefore I have allowed the appeal to the favour of appellants. The levy of penalty is also not warranted in this case and hence the penalty al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ailed heads of the charges of electricity such as energy bill, surcharge, etc., were printed in black. The charges for the supply were of one composite sum for the entire job. The applicant was obliged to destroy any receipt books in excess of the MPEB's requirements. On the question whether the transaction was a sale or works contract: Held,that having regard to special type of jobwork done and other basic circumstances, the supply represented a works contract. The intention of the parties was material and it was obvious. The principal object of the MPEB was to get the material printed and not to purchase printed material. The charges were composite. The books were specially designed for the MPEB as per its specifications ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ard to the nature of the job to be done and the confidence reposed, to work to be done for remuneration and no liability to sales tax arose in respect thereof. But, since the demand notes prepared by the respondent showed the cost of paper separately and the supply of paper was treated separately, this was a composite contract for the supply of paper and for the execution of work. BY THE COURT: (i) 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 in the godds so used passes to other party, the contractor undertaking to do the wo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r Women promoting vocational training to Rural youth and women in various discipline is in the nature of the works contract as the goods are supplied to a particular institution on specific orders and as such are not utilised in the course of business of the Assessee for sale otherwise and the property in question stands transferred to the customer as per the specification of the customer and that the specific works contract has been carried out by the Assesee complying with the specific orders and, therefore, the same clearly falls under the Section 3(B) of the TNGST Act, 1959, falling within the charging provision of Section 3 of the Act. Therefore, we are satisfied that the order of the Revisional authority dated 29.01.2002 is liable to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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