TaxTMI 
TaxTMI 
2012 (7) TMI 855
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.... passed under the Karnataka Sales Tax Act, 1957 for the years 1999-2000 and 2000-01. 2. The assessee by agreement dated February 3, 1995, undertook to execute the works for design, fabrication, supply and erection of 12 numbers of radial crest gates of size 15 metres x 15.24 metres with hydraulic hoists from gate No. 15 to 26 and 3 sets of stop log gates and granty crane for the spillway of Alamatti Dam Package. The total contract price negotiated and agreed to was Rs. 20,360 crores. Subsequently, a separate agreement dated December 1, 1999 was entered into requiring for compressing erection process of spillway crest gates from 12 months to six months on the ground that it was under compulsion for completing the erection of the crest gates....
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....before the Tribunal. The Tribunal set aside the order of the revisional authority on the ground that out of the separate amount of Rs. 1,60,00,000 and Rs. 1,30,00,000 which was paid to take on hire two numbers of high power cranes and additional equipments, nothing was paid towards supply portion of the contract, namely, fabrication and supply of 12 numbers of radial crest gates. In order to attract section 5B, the contract should be a contract, which involve transfer of property in goods. Therefore for works contract to come under the purview of section 17(6) of the Act it should be a contract which involves transfer of property in goods. A contract for mere labour and service would not also be attracted by section 5B and as corollary woul....
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....ontract. Once there is no sale of goods section 5B, is not attracted. If section 5B is not attracted, section 17(6) is also not attracted. Therefore he submitted that the impugned order is just and proper and does not call for interference. 7. If the second contract is viewed as an independent contract, it is a contract for obtaining two numbers of high powered cranes and additional equipments, there is no sale of goods. It is purely a labour contract. But the contract between the parties is not to provide labour. The first contract where he undertook to execute the work is to be considered. In other words, the second contract cannot be treated as an independent contract. This is part and parcel of the first contract. Both the contracts pu....