Taxability depends on contractual evidence, not the invoice alone, in distinguishing a sale from a works contract.

Taxability of a transaction under a sales tax reference must be determined from the contractual terms and supporting evidence, not from the invoice alone. An invoice that only records the amount charged for supply and affixing of electrical fittings does not by itself establish whether the arrangement is a composite works contract or separate contracts for sale and labour. Where no evidence is led to prove the contract terms, any finding that the transaction was a sale lacks evidentiary foundation. The reference answer was therefore discharged and set aside, without expressing any view on the underlying sale-versus-works-contract issue.

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Issues: Whether the question referred for opinion could be answered on the basis of the invoice alone, and whether a finding that the transaction was a sale could stand without evidence of the contractual terms.

Analysis: The statutory scheme empowered the Commissioner to determine whether a transaction was a sale or whether tax was payable, but such determination had to be made on the evidence relating to the contract itself. The invoice merely recorded the amount charged for supplying and affixing electrical fittings and did not disclose whether the arrangement was a single composite works contract or separate contracts for sale and labour. No evidence was led to prove the terms of the contract. Findings reached by the authorities below were therefore unsupported by evidence, and the reference question framed by the High Court did not truly bring out the issue that required determination.

Conclusion: The answer recorded by the High Court was discharged, because the transaction could not be treated as proved on the invoice alone and the matter could not be decided on the existing record.

Final Conclusion: The decision turned on absence of evidentiary foundation for deciding taxability of the transaction, and the reference answer was set aside without expressing any view on the underlying sale-versus-works-contract question.

Ratio Decidendi: Taxability of a transaction under a sales tax reference must be determined from the terms of the contract and supporting evidence, not from the invoice alone.

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