1982 (4) TMI 263

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....ertook to deliver printed material in accordance with the customers' instructions. The Tribunal therefore considered the receipts in the assessee's business as representing turnover in sales of goods taxable under the Act. For the same reason, they rejected the contention of the assessee that the turnover only represents receipts from works contracts. The learned counsel for the assessee submitted that the order forms, on the basis of which the transactions took place as between the customers and the assessee clearly distinguish between the two transactions, one, the supply of paper by the assessee to the customers at a price, and the other, the cost of printing, the two being set out in separate columns in the order forms. The learned c....

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....rs provided for in the order forms. If the one and only contract between the customer and the assessee is that the assessee should get some printing done on the paper provided by the customer, the assessee would not be bothered about the quality or cost of the paper, so long as printing work can be done on it. There is no particular reason why in an order form, which is supposed to request the assessee to execute a printing job, special mention should be made of the cost of paper. The column provided for this particular really lets the cat out of the bag, which is that the cost of paper really represents the price of paper which is included in the material ultimately passing from the assessee to the customer.   The Tribunal, whic....

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....inter for a job work to be done on it. This case is not an authority for the position that even in a case where a contract is one and indivisible for the purpose of supply at a price of printed material, the court must hold that part of the receipts represents works contracts pure and simple. The learned counsel cited a later decision reported as Varghese v. State of Madras [1965] 16 STC 184. This was a case of a tailor. The finding of the Tribunal in that case was based on an order book in which the cost of cloth supplied by the tailor to the customer was separately billed for and where the cloth was taken back for being rendered into a dress by the tailor. The court rested its decision in that case on the circumstance that order book w....