1975 (1) TMI 63

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....dent of India, the respondent agreed to produce a motion picture styled "telephones" on the subject based on the synopsis set out in Schedule A, which was annexed thereto. The terms of the said agreement, inter alia, provided that the respondent was to shoot, direct, produce, edit, title and in all respects complete and execute a 35 mm. black and white talkie-film on the subject of telephones with background music and commentary in English/Hindi of the length of about 1,000 feet and after completion thereof to deliver to the Government of India, described as the "buyer", the original picture negative, the final mixed sound negative, music track positive, effects track positive, final release prints, dupe sheets, commentary sheets, one dupe ....

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....ales Tax, but the same was rejected, and the Deputy Commissioner confirmed the orders of the lower authorities. Against this order of the Deputy Commissioner, the respondent preferred a revision application before the Sales Tax Tribunal. The Tribunal took the view that notwithstanding the use of certain terms like "buyer", "consideration", "delivery of materials", "approval" and so on, the contract had to be interpreted and understood in the light of the surrounding circumstances. It was held by the Tribunal that what the parties intended was not to contract for sale of goods but to contract for the skill and labour of the respondent in the production of the said film. The Tribunal has further held that although the relative value of the l....

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....overnment and a producer under which the producer agreed to shoot, direct, produce, title and in all respects complete a 35 mm. talkie-film of the length of about 2,000 ft. on the subject of handloom industry with background music and commentary in Hindi and after completion to deliver to the buyer the original picture negative, sound track, etc., of that film. The contract contained several terms as to what the film was to contain and for checking, supervision, etc., by the Government. The Tribunal, on the construction of the said contract, held that the contract was for a work of art and not for sale of goods. The Commissioner of Sales Tax made an application to the Tribunal for referring the question to this court as to whether the said ....