1989 (4) TMI 314

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....itioners, is that the body built to be fitted on the chassis has already suffered sales tax and, therefore, there is no scope for taxation again. This contention was overruled by the assessing authority as well as the Tribunal on going through the various invoices produced. What is now urged before us is that in so far as the petitioners have to supply only the finished product as a motor vehicle namely station wagon or autorickshaw, if the chassis alone is supplied and the body is built by somebody else on which chassis the body is fitted, there cannot be any liability for sales tax. The contract is for supply of finished product namely station wagon or autorickshaw. The Tribunal erred in relying on the decision in Rane (Madras) Ltd.....

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....dt. 9-3-1970 Part No. Amount Construction charges of an open type van body on one Lambretta three wheeler chassis bearing the Engine No. 003646-Chassis No. 003485 1,300.00 -------- 1,300.00 Sales tax 13% 139.00 -------- 1,469.00 -------- (Rupees one thousand four hundred and sixty-nine only.) (TRUE COPY) On this basis it was argued that the body having suffered sales tax, there is no possibility of taxing it over again. We are afraid, it is not the way to look at the matter at all. As rightly pointed out by the Tribunal, the contract is for the delivery of station wagon or autorickshaw. It is worthwhile to quote verbatim the order of the Tribunal which is as follows: "In the cases wherever they were pr....