Photographic contracts as skill and labour, not sale of goods, cannot support sales tax demands or recovery action.

A contract to take, develop and print photographs is treated as one of skill and labour, not a sale of goods. On that basis, sales tax could not validly be levied on the photographic work, and any assessment or demand founded on the contrary view was unsustainable. Recovery proceedings based on the invalid demand also could not continue. The document states that the impugned tax demand and recovery action were quashed, giving the petitioner complete relief.

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Issues: Whether the supply of photographs, after taking, developing and printing, constituted a sale of goods exigible to sales tax; and whether the assessment and recovery proceedings based on such levy could stand.

Analysis: The transaction was examined in the light of the governing principle that a photographer, when engaged to take photographs, develop negatives and supply prints, performs a contract essentially involving skill and labour rather than a contract for sale of goods. The earlier view relied upon by the assessing authority was held to be inconsistent with the later binding pronouncement of the Supreme Court. Since the assessment proceeded on the erroneous premise that the finished photographs were taxable sales, the resulting demand was not sustainable. The certificate proceeding, being founded on that unsustainable demand, also could not continue.

Conclusion: The levy of sales tax on the petitioner's photographic work was held not to be legally sustainable, and the assessment, demand and recovery proceedings were quashed.

Final Conclusion: The writ petition succeeded and the petitioner obtained complete relief against the impugned tax demand and recovery action.

Ratio Decidendi: A contract for taking, developing and printing photographs is predominantly one for skill and labour and not a sale of goods, and a tax demand founded on the contrary view cannot be sustained.

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