TaxTMI 
TaxTMI 
1983 (3) TMI 256
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....he assessment year 1976-77. The findings of the Appellate Tribunal are: "that on the facts and in the circumstances of the case, transaction of the assessee-appellants, i.e., acting as sub-contractor of the main contractor M/s. Rodio Hazarat, who had entered originally in contract with Visakhapatnam Port Trust for the construction of the Fishing Harbour, Visakhapatnam, amounted to a contract for execution of work and not for sale of goods." The question is whether the Tribunal's decision while placing reliance on decisions in the cases reported in (i) Sentinel Rolling Shutters & Engineering Company Pvt. Ltd. v. Commissioner of Sales Tax [1978] 42 STC 409 (SC), (ii) Arun Electrics v. Commissioner of Sales Tax, Maharashtra State [1966] 17 STC....
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....e of the contract, but as and when such materials were imbedded in the contractual work involved, they became the property of the company, and as such, the question of sale of such materials by the appellant (respondent herein), does not arise." It was further held that: "On a consideration of the intention of the parties taken as a whole, one has to irresistibly conclude that it is a works contract, in which, use of materials is incidental to the execution of the work and it is not a contract involving sale of goods. The contract is an entire and indivisible contract as the consideration for the entire work of breaking and producing prescribed different grades and sizes of boulders, transporting goods to the work-spot and placing the....
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.... various level as shown on drawing and as directed by Deptl./ Site Engineer. (Rates to include cost of material, seignorage and royalty, as applicable, labour, transport, equipment and placing in position to required levels and slopes.) a. Rock grade 'A' (25 Kg. to 1120 cu.m. 50.00 56,000.00 3000 Kg.) b. Rock grade 'B' (25 Kg. to 24980 " 33.00 8,24,340.00 500 Kg.) c. Rock grade 'C' (O to 25 Kg.) 16640 " 33.00 5,49,120.00 (2) Provide and place in position filter of stone chips of 25 mm. and down grade on the reclamation bund behind Quay as shown on drawing and as directed by Deptl./ Site Engineer. 910 cu.m. 30.00 27,300.00 Total 14,56,760.00 ------------------------------------------------------------------------------------I ....
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....seepage. Further, the work will have to be executed in accordance with the specifications and also under the directions of the engineers of the Port Trust and therefore, there is absolutely no scope whatsoever, to hold that the dominant object is the supply of boulders. The main and essential part of the contract is to fix those materials in accordance with the directions and instructions given on the spot by the engineering personnel of the department. The case of Anamolu Seshagiri Rao & Company v. State of Andhra Pradesh [1980] 45 STC 388, on which the learned Government Pleader places reliance, is of little assistance to him, because there the court was dealing with a situation whereunder the contract with the railways entered into by....