1991 (6) TMI 244

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....rinted materials. We are concerned with the assessment year 1979-80. The assessee had entered into an agreement with the Kerala State Road Transport Corporation ("the corporation" for short) on August 17, 1978, for supply of tickets at a specified rate. The assessee returned a total and taxable turnover of Rs. 12,28,189.34. The Additional Sales Tax Officer, Kunnamkulam, completed the assessment on a total and taxable turnover of Rs. 14,65,160. The assessee preferred a revision before the Deputy Commissioner, Agricultural Income-tax and Sales Tax, Trichur. He declined to interfere for the reason that patent irregularity or impropriety in the original assessment completed by the assessing authority was not noticed warranting interference unde....

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.... specified in the subject order. The rates specified are inclusive of all costs of materials, transporting charges, taxes, if any or any other incidental charges. The short point for consideration is whether printing of tickets for the corporation can be taken to be a contract for sale of a finished product or whether it is only a contract for labour. 3.. That the contract between the assessee and the corporation is for supply of printed tickets is not disputed. According to the assessee the tickets are not finished products and the work of printing amounts to a works contract. It is pointed out that the tickets printed by the respondent cannot be sold in open market to any other person and it has no commercial value. We are referred to ....

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....sion in that appeal is reported in [1989] 73 STC 1 (State of Tamil Nadu v. Anandam Viswanathan). After an exhaustive survey of the various decisions touching the subject the Supreme Court held: "The primary difference between a contract for work or service and a contract for sale is that in the former there is in the person performing or rendering service no property in the thing produced as a whole, notwithstanding that a part or even the whole of the material used by him may have been his property. Where the finished product supplied to a particular customer is not a commercial commodity in the sense that it cannot be sold in the market to any other person, the transaction is only a works contract. " 4.. It was also observed that....