Sale of printed photographs held taxable where the transaction was found to be supply of finished goods, not merely skilled service.

The supply of printed photographs to customers for payment was treated as a sale exigible to sales tax because the true character of the transaction was the supply of finished goods, not merely skilled labour or a service contract. The Court applied the substance of the transaction test, noting that the customer's object was to obtain completed photographs for a price. On that basis, the transaction fell on the sale side of the line, and the Tribunal's view was affirmed.

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Issues: Whether the supply of printed photographs to customers on payment constituted a sale exigible to sales tax under the Orissa Sales Tax Act, 1947.

Analysis: The determination turned on the true nature of the transaction, namely whether it was merely a contract for skilled service and labour or a composite transaction involving supply of finished goods along with labour. The Court held that, on the normal mode of dealing between photographer and customer, the customer was concerned with obtaining finished photographs for a price, and the substance of the transaction was the supply of finished goods. On that basis, the transaction fell on the sale side rather than being only a service contract.

Conclusion: The supply of photographs to customers on payment was held to be a sale exigible to sales tax, and the view taken by the Tribunal was affirmed.

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