1964 (8) TMI 54

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....see had described in their bills as "art charges and translation charges". The amount so added came to Rs. 14,650-92. The assessee appealed to the Sales Tax Appellate Tribunal, Madras, disputing this addition. His contention was that for the customers, who came to him for advice in the matter of advertisement, he supplied ideas and sketches and also words to be used for advertisement purposes. Thereafter the nature of the design of the advertisement was settled between the customer and the assessee. If the customer so required, the assessee also placed an order in accordance with the design with the block-maker on the agreement that the price charged by the block-maker for making the block would be passed on to the customer together with a ....

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....of the assessee because they are integrated with the price of the block. The learned Government Pleader also draws our attention to a decision of this Court reported in T.V.S. Sarma Studio v. State of Madras[1963] 14 S.T.C. 784. In that case a firm of advertisers supplied designs to the customers and charged them for such designs. The customers did not entrust the making of blocks to the advertisers but took back the designs and made their own arrangements for the making of the blocks. A Bench of this Court held that charges for making such designs for advertisement purposes should not be assessed to sales tax. The learned Government Pleader seeks to make a distinction in this case in so far as the assessee himself arranged for the making o....