Design supply not treated as a sale under sales tax law, following earlier artwork precedent.

Preparation and supply of a design to a customer was held not to constitute a sale within the meaning of section 2(28) of the Bombay Sales Tax Act, 1959. The court applied its earlier decision on an identical issue concerning preparation and supply of artwork and treated that precedent as controlling. On that basis, the transaction was not regarded as a taxable sale, and the Tribunal's view that the impugned transaction was not a sale was upheld in favour of the assessee.

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Issues: Whether the preparation and supply of the design by the respondent to its customer constituted a sale within the meaning of section 2(28) of the Bombay Sales Tax Act, 1959.

Analysis: The controversy was covered by the Court's earlier decision on an identical question concerning preparation and supply of art work. Applying that decision, the transaction in question was not treated as a sale for the purposes of the Act.

Conclusion: The question was answered in the affirmative, meaning that the Tribunal was justified in holding that the impugned transaction was not a sale; the finding was therefore in favour of the assessee.

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