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1990 (4) TMI 179
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....ppellants. Mrs. S. Baliga, SDR, for the Respondent. [Order per : S.V. Maruthi, Member (J)]. - The appellants manufacture pre-stressed concrete pipes. They entered into a contract with Orissa Government (Executive Engineer Rasiculla Project, Public Health Div.) for executing the work of manufacturing of pipes/ transporting, laying and jointing of pipe lines and testing of pipe lines. The c....
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....e of the same. The sale takes place only when the pipe line is complete and so satisfactorily perform for one year." Hence the present appeal before us. 2. The order of the Collector discloses that manufacturing cost and profit of the pipes works out to 87% of the contract value and the balance of 13% works out towards the transportation, laying and jointing, testing and maintenance of pipes. T....
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....ufacturing activities. The contract is a composite contract for manufacture and executing the work. The cost for executing the work is separable. Further the testing and maintenance of pipe is not an essential part of manufacturing activity. Secondly, the pipes laid at site through civil work and permanently attached to earth without which they cannot perform or work. Therefore, the expenses incur....