1971 (3) TMI 103

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....n a mine for which the Industrial Chemicals Limited obtained a mining lease from the Government. The mine is situate at the fringes of the islands of Talaivi, Valai and Mulli in Ramanathapuram Taluk in Ramanathapuram District. The lease itself is for a period of five years from 10th June, 1964. The consideration recited in the agreement dated 28th October, 1964, is that the petitioner who is characterised as a contractor should be remunerated for such service undertaken by him to quarry the stone from the reefs in the manner specified in the agreement. Inter alia, the agreement provides that the petitioner was to engage all the labour necessary to carry out the quarrying operations; the place and time at which the quarrying is to be done sh....

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...., the petitioner supplied during the years 1964-65, 1965-66 and 1966-67 various quantities of limestones so quarried under the contract to the company and effected deliveries of the same in accordance with the terms thereof and obtained payments for such agreed service rendered by him. For the year 1964-65 the petitioner, as a registered dealer, was assessed to tax. For the years 1965-66 and 1966-67 the assessment was not completed. On information that the petitioner did have dealings with the company in the manner stated above, the department reopened the assessment for the year 1964-65 under section 16 of the Madras General Sales Tax Act and issued a notice for the purpose. For the years 1965-66 and 1966-67 notices were issued under secti....

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....agreement between the parties by the petitioner to the company would be assessable in the sense that they were ordinary supplies of goods for consideration by the petitioner to the company. In each of these writ petitions an observation is made that the petitioner did make such supplies from a source other than the mine entrusted by the company to the petitioner for quarrying. It, therefore, follows that the assessment order in so far as it relates to such supplies made by the petitioner to the company in the course of the financial years in question are assessable since they are to be characterised as sales by a dealer to a person. The contention, however, is that the major transactions which the petitioner had during the assessment yea....