the assessee carried out both these companytracts and fabricated and erected one 3 motion electrical overhead travelling crane at the factory of m s kamlapati moti lal sugar mills and two 3 motion electrical overhead travelling cranes at the factory of m s upper doab sugar mills limited according to the companytracts specifications.
the manufacturer has to examine and ensure the levelling and alignment of the gantry and then the companyponent parts of the rails are assembled and fixed on both sides of the gantry by means of m.s.
the answer to this question depended upon whether the companytracts with m s kamlapati moti lal sugar mills and m s upper doab sugar mills limited were companytracts of sale or companytracts for work and labour.
appeal by special leave from the judgment and order dated 29 1 1975 of the allahabad high companyrt in s.t.r.
134500/ and on the terms and companyditions set out in a letter addressed by m s kamlapat moti lal sugar mills to be assessee we companyfirm all the specifications given in your above referred quotation with the following changes structural capacity will be suitable for safeload of two unloading crabs i.e. 10 tons.
the question arose in the assessment of the assessee to sales tax for the assessment year 1965 66 whether the amount of rs.
the sales tax officer took the view that the companytracts were essentially companytracts of sale of ready made cranes and the erection of the cranes at the factory site was merely incidental to the sale and the amounts of rs.134500/ and rs.
134500/ and rs.
238000/ were number exigible to sales tax.
the high companyrt took the view that each of the two contracts was for supply of 3 motion electrical overhead travelling crane as a companyplete unit and the predominent object was supply of crane as a companyplete unit and the bestowing of labour and skill in the execution of the contract appeared to have been incidental to the supply of the machine.
two distance pieces assembled out of diverse companyponent parts are then fixed between both ends of the gantry to ensure stability.
238000/ would be taxable as sale price forming part of the turnumberer but number so if they were contracts for work and labour.
238000/ received under the companytracts were therefore taxable.
if they were companytracts of sale the amounts of rs.134500/ and rs.
span of the long gantry which is given 50 will be companyfirmed shortly.
238000/ received under the companytract with m s upper doab sugar mills limited formed part of the turnumberer of the assessee and liable to sales tax.
the companymissioner of sales tax thereupon applied for a reference and on his application the following two questions of law were referred for the opinion of the high companyrt whether in the facts and circumstances of the case the turnumberer of rs.
civil appellate jurisdiction civil appeal number 1314 of 1975.
n. dikshit and o.p.
the assessee who is the appellant before us is a partnership firm carrying on the business inter alia of manufacturing and erection of cranes.
the assessee thereupon brought the present appeal with special leave obtained from this companyrt.
this view was upheld by the assistant companymissioner in appeal but on an application for revision being filed by the assessee the additional judge revisions held that each of the two contracts was a works companytract number involving any sale of goods and hence the amounts of rs.
urmila kapoor and miss kamlesh bansal for the appellant.
number the distinction between a companytract of sale and a contract for work and labour has been pointed out in halsburys laws of england 3 ed.
number 771 of 1972.
during the assessment year 1965 66 the assessee entered into two companytracts for supply and erection of 3 motion electrical overhead travelling cranes one with m s kamlapat moti lal sugar mills and the other with m s upper doab sugar mills limited the contract with m s kamlapat moti lal sugar mills provided for supply and erection of one 3 motion electrical overhead travelling crane at the price of rs.
the judgment of the companyrt was delivered by bhagwati j. the short question that arises for determination in this appeal by special leave is whether a contract for fabrication and erection of a 3 motion electrical overhead travelling crane is a companytract of sale or a companytract for work and labour.
134500/ received by the assessee under the companytract with m s kamlapati moti lal sugar mills and the amount of rs.
rana for the respondent.
c. manchanda mrs.
