Supply of finished photographs as goods, not mere work and labour, governed the sales tax classification.

Supply of finished photographs and photo copies by a professional photographer was treated as a sale of goods because the substance of the bargain was delivery of a marketable finished product, not labour alone. The Court held that the materials used became part of the end product, and the presence of skill in taking the photograph did not alter the commercial character of the transaction. Earlier treatment of similar arrangements as works contracts was held not to control the classification on these facts, and distinctions drawn from artistic sculpture were found inapplicable. Sales tax was therefore upheld.

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Issues: Whether the supply of photographs and photo copies by a professional photographer in the course of carrying on photography amounts to a sale of goods liable to sales tax, or is merely a contract for work and labour.

Analysis: The activity of a photographer was found to involve a finished product, namely the photograph and copies taken from the negative, in which the materials used became part of the end product. The presence of skill at the stage of taking the photograph did not change the essential character of the transaction, because the bargain was for the supply of the finished article to the customer. The Court held that the business activity had a commercial character and was not interlocked with dealing in photographic materials. Earlier treatment of similar transactions as works contracts was held not to control the present classification, since each transaction had to be judged on its own facts and the existing law. The authorities distinguishing artistic sculpture from ordinary photography were held inapplicable on the facts.

Conclusion: The transaction was held to be a sale of goods and not a contract for work and labour, and the levy of sales tax was upheld.

Ratio Decidendi: Where a photographer supplies finished photographs or copies to a customer in the course of business, the transaction is a sale of goods if the substance of the bargain is the delivery of a marketable finished product rather than the rendition of work and labour alone.

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