1982 (3) TMI 249

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....tioner entered into various contracts with the plant for supply of fabricated goods for the period from 1st April, 1972, to 31st March, 1973. The petitioner did not file any return for the first and second quarters but it filed returns for the third and fourth quarters under the M.P. General Sales Tax Act, 1958. In the assessment proceedings before the Sales Tax Officer, the petitioner showed sales of Rs. 2,10,416.62. The petitioner also disclosed that he received Rs. 2,36,100.44 as labour charges. The labour charges were said to have been received by the petitioner on the basis that the transactions relating to them were not contracts of sale of goods but contracts for work and labour. The Sales Tax Officer in his order dated 14th June, 19....

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....relating to the labour charges disclosed by the petitioner were contracts of sale of goods. We have already stated that the Deputy Commissioner accepted the petitioner's contention partly and he held that the contracts relating to the labour charges to the extent of Rs. 90,000 were contracts for work and labour. The Deputy Commissioner examined all the contracts. He found that in certain of the contracts the material was supplied by the Bhilai Steel Plant to the petitioner for fabrication free of cost and in certain other cases it was supplied on cost recovery basis. The Deputy Commissioner held that in those cases where the material was supplied free of cost the contract was purely for work and labour; whereas in those cases, where the mat....