TaxTMI 
TaxTMI 
2003 (8) TMI 510
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....n job printing. 3.. The case of the petitioner is that prior to the coming into force of the Act, that is, on July 1, 1993, there was no provision of imposition of sales tax on the press owners of Assam. However, in view of the definition of works contract, sales tax was made leviable under section 8(1)(e) of the Act as stated above. The main grievance of the petitioner is that in the process of printing works, there is no transfer of property in goods. It is submitted that generally besides other materials used in printing works, the paper which is generally supplied by the persons placing the order. Paper even if supplied by the printing press under the Act is not to be taxed again as under the provisions of the Act, the paper is taxable....
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....ransaction in question does not render it a transaction of sale. For, even in a contract purely of 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 those 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 into it. It may in some cases be that even while entering into a contract of work or even service, parties might enter into separate agreements, one of work and service and the other of sale and purchase of materials to be used in the course of executin....
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....support of his submission, he has referred to a decision of the Full Bench of the Bombay High Court in the case of Sarvodaya Printing Press v. State of Maharashtra reported in [1994] 93 STC 387, wherein it was held as follows: "Held, that having regard to the special type of job-work done and other basic circumstances, the supply represented a works contract. The intention of the parties was material and it was obvious. The principal object of the MPEB was to get the material printed and not to purchase the printed material. The charges were composite. The books were specially designed for the MPEB as per its specifications as to size, type, colour, format, background, etc. No space was left blank obviously because the books were valuabl....
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....omers. The respondent entered into an agreement with the Madhya Pradesh Reported as State of Maharashtra v. Sarvodaya Printing Press Fine Art Printer [1999] 114 STC 242. Electricity Board for the supply of 'revenue money receipt books' at the rate of Rs. 8.88 per receipt book. The judgment of the High Court shows that only job work was done in the respondent's printing press and that the charge for the supply of the receipt books was of a composite nature. The judgment states that the paper and ink used were the property of the respondents before printing but thereafter they became the property of the Board; while the property in these goods passed to the Board, this was, in the very nature of things, only incidental or ancillary to the co....