Printed cinema tickets treated as finished goods, not works contracts, so sales tax applied.

Printing and supplying cinema tickets under customer specifications was treated as a sale of finished goods rather than a works contract. The breakdown in invoices between paper and printing charges was not ative, because there was no separate bargain for paper and the substance of the arrangement was supply of completed printed tickets. The statutory concept of a works contract for movable property, requiring fitting out, improvement, or repair, did not extend to this printing activity. Property passed only on delivery of the finished tickets, so sales tax applied and the assessee's contention failed.

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Issues: Whether the transactions for printing and supplying cinema tickets were works contracts or sales of finished goods liable to sales tax.

Analysis: The orders placed by customers were for printing and supply of tickets according to specifications, with no separate bargain for supply of paper. The break-up shown in the bills between paper and printing charges was not decisive. Under the statutory definition, a works contract in relation to movable property must involve fitting out, improvement, or repair, which did not cover the printing of cinema tickets. The substance of the contract showed that the assessee was to supply finished printed tickets, and property passed only on delivery of the finished goods.

Conclusion: The transactions were sales of finished goods and not works contracts; the assessee's contention failed.

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