1970 (2) TMI 119

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....he agreement relating to the contract was not made an annexure but a copy thereof has been supplied to us by Mr. Mohanty. Law is well settled that if the contractor does construction of roads and that is the subject-matter of the agreement, then he is not liable to sales tax even if he supplies materials for the purpose of construction. The principle is whether goods passed to the purchaser as mov....

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....ruction of the road and the agreement is for construction of the road, then there is no sale of those movables. It appears from the assessment order that the Sales Tax Officer did not clearly appreciate the legal position. He says: "It was learnt on enquiry that the contractor executed certain road works under the, Executive Engineer, P.W.D. (R. & B.) Mayurbhanj Division, and in course of such wor....