1984 (9) TMI 262

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.... order dated 30th April, 1983. The assessee carried on a printing press. It printed bill books as per the requirement of customers on its own paper, purchased from within U.P., which was exempt for the purposes of sales tax. The assessee raised a consolidated bill for the price of paper and for printing charges. The question arose whether the parties entered into any agreement of sale and wheth....

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....between the assessee and the customers, and therefore, the sale proceeds of the bill books were rightly included by the Sales Tax Officer in the turnover. To reinforce his argument, learned Standing Counsel relied on decisions of this Court in the cases of Kanpur Journals Limited v. Commissioner of Sales Tax, U.P. [1956] 7 STC 661 and Commissioner of Sales Tax v. Riazul Haq Shamsi 1984 UPTC 613. O....

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....f work or service, it is possible that articles may have to be used by the person executing the work and property in such articles or materials may pass to the other party. That would not necessarily convert the contract into one of sale of these materials. In every case, the Court would have to find out what was the primary object of the transaction and the intention of the parties while entering....

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.... On the same page and in the same para, the Supreme Court observed as under: "A contract of sale is one whose main object is the transfer of property in, and the delivery of the possession of, a chattel as a chattel to the buyer. Where the principal object of work undertaken by the payee of the price is not the transfer of a chattel qua chattel, the contract is one of work and labour." When ....