Contract for manufacture and supply of bricks was a sale, not a works contract, under the Rajasthan Sales Tax Act.

A contract for manufacture and supply of bricks and tiles was treated as a sale rather than a works contract because the true construction of the agreement showed an intention to transfer the finished goods as chattels for consideration. The contractor bore the risk of loss during manufacture, paid the taxes and levies, and was obliged to deliver the completed goods, while the State's supply of some raw materials and supervision for quality control did not alter the essential character of the bargain. On that basis, the assessee fell within the meaning of "dealer" under section 2(f) of the Rajasthan Sales Tax Act, 1954.

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Issues: Whether the contract for manufacture and supply of bricks and tiles was a contract of sale or a works contract, and whether the assessee was a dealer within the meaning of section 2(f) of the Rajasthan Sales Tax Act, 1954.

Analysis: The decisive test was the true construction of the contract, the intention of the parties, and whether the chattel produced was intended to be transferred as a chattel for consideration. The agreement described the undertaking as supply of bricks and tiles, fixed rates per thousand, placed the risk of loss during manufacture on the contractor, required the contractor to bear taxes and related levies, and contemplated delivery of the finished goods to the State. The fact that the State supplied some raw materials and exercised inspection and supervision did not change the essential character of the bargain, because those terms were consistent with efficient manufacture and quality control. The contract was found to be materially similar to earlier decisions treating comparable brick-manufacture arrangements as sales rather than works contracts.

Conclusion: The contract was a contract of sale of pucca bricks and tiles, not a pure works contract, and the assessee was a dealer under section 2(f) of the Rajasthan Sales Tax Act, 1954.

Ratio Decidendi: A contract for manufacture and supply of goods is a contract of sale where the intention is that the completed goods be delivered as chattels for consideration and the property and risk remain with the contractor until delivery, even if the buyer supplies some materials and supervises manufacture.

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