1970 (4) TMI 145

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.... assessee in these cases is M/s. Hindustan Steel Limited, Bhilai Steel Project, Bhilai (hereinafter referred to as "the company"). While the said company were in the process of constructing their buildings and roads, etc., they employed contractors for the purpose of making constructions. Since the building materials were controlled, the contractors found it difficult to obtain them for the said construction work. The company, therefore, agreed to procure the materials themselves and supply the same to the contractors for building purposes. For these supplies they charged their cost price plus 10 per cent. for supervision and storage, etc. In the agreement clause 51, it is expressly stated: "All materials supplied to the contractor shall....

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....ing the construction completed without written agreements amounted to 'sales' within the meaning of the C. P. and Berar Sales Tax Act, 1947? (2) Whether the assessee-company is a 'dealer' within the meaning of section 4 of the C. P. and Berar Sales Tax Act, 1947, in respect of the supply of building material to its own contractors without written agreements for the purpose of execution of the contracts of constructions for and on behalf of the assessee?"   5. After hearing the learned counsel for both parties, we are quite clear that upon the findings arrived at by the Tribunal that the company was not carrying on business in the building material which it was supplying to its own contractors for preparing its own buildings and t....

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.... In this portion of the clause there is nothing to indicate that the ownership of the material was to pass to the contractor. This provision had been made only for the purpose of safeguarding the interest of the company in case the contractor starts saying that some material has remained unused which the company thinks is wrong or which the contractor may unnecessarily waste and may claim damages for waste of material which remained unused in the building. In order to avoid such unseemly controversies this provision in the agreement has been made and it only affects the matter of adjustment of accounts. It does not affect the passing of the material to the contractor. We, therefore, see no element in the case by which the assessee would b....