2006 (7) TMI 595

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....ase is whether bus-body built by the petitioner on the chassis supplied by the customer is a commodity taxable as such, or whether it is a works contract entitling exemption to the petitioner on labour charges. It is seen from the Tribunal's order that they rejected the petitioner's claim following the decision of the Supreme Court in the case of T.V. Sundram Iyengar Sons v. State of Madra....

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....construct some building or set up a factory plant wherein the material used can be said to become the property of the other party by invoking the theory of accretion. It is no doubt true that the bus bodies supplied by the assessees were not ready-made and had, if necessary, to be constructed bit by bit and plank by plank, according to specifications, but that fact would not make any material diff....

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....pt ready for sale and any customer bringing chassis can purchase it, fix the same on the chassis in a ready-made condition. There is provision in the Entry Tax Act to levy tax on bus-body treating it as a distinct product. Even under works contract, tax at the Schedule rate applies, when custom-made articles are made and sold based on contract between parties. In such circumstances, we do not thin....