Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Contract of Work and Labour and Contract of Sale |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Contract of Work and Labour and Contract of Sale tests for guidance. The appellant assessee entered into a contract dated 28th June, 1972 for fabrication, supply erection and installation of Sentinel's Pull and Push type and Reduction Gear type rolling shutters in sheds Nos. 3 and 4 of the Sidheshwar Sahakari Sakar Karkhana belonging to M/s. C. M. Shah & Co. (P) Ltd. as per the terms and conditions of the contract. The special terms and conditions provided that the actual transportation charges would be in addition to the price stipulated in the contract and the delivery would be 6/8 weeks, ex·works from the date of receipt of the final confirmation of the order. The terms of payment also formed part of the special terms and conditions and they provided 25% advance, 65% against delivery and remaining 10% after completion of erection and handing over of shutters to the satisfaction of the company. The assessee carried out its part of the contract by erecting and installing the rolling shutters. Since the assessee entertained doubt as to whether the contract was a contract for sale or a contract for work and labour, the assessee made an application dated 16-9-72 to the Commissioner of Sales Tax for determining this question. The Deputy Commissioner of Sales Tax took the view that the contract was a contract for sale of rolling shutters and the work of erection and installation was merely incidental to the sale and the assessee was therefore liable to pay sales tax on 95% of the amount receivable; by it under the contract. In appeal the Sales Tax Tribunal held the contract to be a composite contract consisting of two parts, one for sale of the rolling shutters and the other for execution of the work of erection and installation. The High Court on a reference agreed with the tribunal and answered it in favour of the Revenue. |
Judge | Honble Mr. Justice P.N. Bhagwati |
Neutral Citation | 1978 INSC 167 |
Petitioner | Sentinel Rolling Shutters & Engineerjng Co. (p) Ltd. |
Respondent | Commissioner Of Sales Tax, Maharashtra |
SCR | [1979] 1 S.C.R. 644 |
Judgement Date | 1978-09-12 |
Case Number | 1001 |
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