1998 (3) TMI 663

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....d by the petitioner are not scheduled goods, and x-ray unit is an industrial machinery and the petitioner was considered liable. The receipts for developing x-ray for the customers was considered liable for works contract. The petitioner filed his objections to the notice. Thereafter, in the endorsement dated November 17, 1989 issued by the Deputy Commissioner of Commercial Taxes, it was found that the contract of x-ray photos is a works contract and under section 2(8a), a person who is engaged in the business of transfer of property in goods involved in the execution of works contract is a dealer. It is pointed out that since there are more than 75 persons in the centre and the x-ray machinery is an industrial machinery, the petitioner is ....

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....e property. It is by virtue of insertion of clause N in article 366(29A) that works contract has been brought under the definition of "sale". In order to be a sale there must be transfer of property and if the transfer of -property is in the execution of the works contract, then liability could be fixed. In case of diagnostic centre where a patient goes for having his x-ray prepared or diagnosis of a particular ailment, the question which has to be seen is whether such a transaction could be considered to be a works contract. The x-ray film is no doubt is given to the customer, but that is having no commercial value and it is for the reason that the doctor who has to diagnose on the basis of the x-ray film may have a look at it. The deci....

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....struction, fitting out improvement or repair of any building, road, bridge or any other immovable property or manufacture, processing, fabrication, erection, installation, fitting out improvement, modification, repair, conversion or commissioning of any movable property." 6.. Section 3 of the Karnataka Tax on Entry of Goods Act is the charging section creating charge when the scheduled goods are brought into local area for consumption, use or sale therein. Section 4 also, fixes the liability for registration on dealers who buys or receives scheduled goods and who are doing business in local areas. From the perusal of the Karnataka Entry Tax Act as well as the Karnataka Sales Tax Act, it is evident that a person can be made liable for pay....