2015 (11) TMI 1427

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....ht in law in negativing the claim under section 3(B) of the Act? 2. Whether on the facts and in the circumstances of the case, the respondent is right in law in holding that the appellant is not eligible for exemption under the notification, relating to the exemption of reading books? 3. Whether on the facts and in the circumstances of the case, the respondent is right in law in interfering in the order of the Appellate Assistant Commissioner, by holding that the plea taken by the appellant as regards to the claim of exemption under reading books was not tenable, when the  Appellate Authority did not consider the plea, in view of his decision of granting relief by accepting the main plea viz., works contract? ....

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....ion receipts towards annual reports were liable to be dealt with under Section 3B of the Act. Hence, the Appellate Assistant Commissioner deleted a sum of Rs. 17,66,252/- from the taxable turnover determined by the Assessing Officer and sustained the taxable turnover to the tune of Rs. 1,19,911/- towards interstate purchase of paper at Rs. 1,19,911/-. Consequently, the First Appellate Authority modified the levy of penalty. 4. Finding that the order of the Appellate Assistant Commissioner was prejudicial to the interest of the Revenue, in exercise of power under Section 34 of the Tamil Nadu General Sales Tax Act, the Joint Commissioner initiated suo motu revision by issuing show cause notice to the assessee. In response to the show cause....

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....ent Pleader appearing for the respondents submitted that when the order placed before the assessee was for supply of printed materials, it is only a sale of printed materials and not as a works contract. In the circumstances, rightly the Joint Commissioner has confirmed the proposal and restored the assessment. 8. Heard learned counsel appearing for the assessee and the learned Special Government Pleader appearing for the Revenue and perused the materials placed before this Court. 9. It is seen from the assessment order herein that the assessee undertook the work of printing annual reports as per the instructions of the customers. The above items were printed for their exclusive use on works contract basis. When the predominant intent....

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....re 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. See the observation in The Court Press Job Branch, Salem v. The State of Tamil Nadu, 54 STC 383 and Commissioner of Sales Tax, M.P. v. Ratna Fine Arts Printing Press, 56 STC 77. In our opinion, in each case the nature of the contract and the transaction must be found out. And this is possible only when the intention of the parties is found out.....