1991 (7) TMI 321

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....rity as well as by the Tribunal. It is against such concurrent findings that the present revision has been filed. 2.. Before us Mr. Janarthana Raja, learned counsel for the petitioner produces the contract for the manufacture and supply of handling facilities for stainless steel tube project. The supply in this case relevant to an equipment called as stopper for lead crops and length cuts, he relies on clauses III and XVI of the contract in support of his contention, that the contract was one for creation and not supply of goods. We will therefore do well to extract clauses III and XVI of the contract: "III. SCOPE OF CONTRACT: The contract is for material, fabrication, sand blasting, machining, assembly, trial run and painting of h....

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....f special raw material except supply of certain free items by the contractee. There is clear indication as to the value of the items to be supplied free of cost by the contractee. This is seen from the letter dated October 28, 1977, addressed by the assessee to BHEL. While the price of the machinery f.o.r. Madras is quoted as Rs. 13,67,400 the total value of free issue of materials is given as Rs. 3,00,000. In this letter there is one another clause, being clause XVII of the contract which cuts off the rest of the petitioner's case. That clause reads as follows: "After assembly and trial run at our works, as mentioned above under scope of supply, we shall make suitable match marks before dismantling the equipment into sub-assemblies for ....