TaxTMI 
TaxTMI 
2016 (12) TMI 1702
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.... work. 2. The turnover of the assessee, Malayala Manorama Co.Ltd., for the assessment year 1993-94, included a receipt of Rs. 13,00,000/- as sale consideration for sale of Manorama Vision Software to Doordarshan. However, the assessee raised a question that the receipts for sale of software to Doordarshan is not assessable as sale, as the consideration received was for the works contract undertaken by them. The assessing authority overruled the objection and assessed the above receipt as sale consideration in the assessment order dated 24.11.1997. The Deputy Commissioner also affirmed the order of the assessing authority in its appellate order dated 5.12.1998. The assessee then filed a further appeal before the Sales Tax Appellate Tribunal....
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....ods" within the meaning of the term as defined in the said Act. The term "all materials, articles and commodities" includes both tangible and intangible/incorporeal property which is capable of abstraction, consumption and use and which can be transmitted, transferred, delivered, stored, possessed, etc. The software programs have all these attributes." The answer to the question involved in this case would depend upon answering the point whether the agreement is a mere contract for work and labour or contract for sale of goods. 5. The agreement was entered on 4.3.1994 between the assessee and Doordarshan. By the said agreement, the assessee was directed to produce a 13 episode serial entitled "Mohapashikal". The assessee had to carryout t....
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.... of articles or was only for providing labour and skill. The Hon'ble Supreme Court has in Hindustan Shipyard Ltd. vs. State of A.P. [(2000) 6 SCC 579] held that there is no straitjacket formula to determine sale or works contract and the intention of the parties has to be culled out on an overall reading of the several terms and conditions of the contract. In State of A.P. vs. M/s.Kone Elevators (India) Ltd. [(2005) 3 SCC 389], it was held as follows: "... In a "contract of sale", the main object is the transfer of property and delivery of possession of the property, whereas the main object in a "contract for work" is not the transfer of the property but it is one for work and labour. Another test often to be applied to is : when....
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.... object of the work undertaken by the assessee is the production of a "cinemautograph film" in a material form. If the skill and labour in making the film cannot be separated from the material object in which it exists the contract will have to be construed as a contract for sale and not as a contract of work and labour. In Assistant Sales Tax Officers and others vs. B.C.Kame [Manu/SC/0421/1976] the Hon'ble Supreme Court held that "...Where the principal object of work undertaken by the payee of the price is not the transfer of a chattel qua chattel, the contract is one of work and labour. The test is whether or not the work and labour bestowed end in anything that can properly become the subject of sale; neither the ownership of mater....
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...., 1957 stipulates that a "cinemautograph film" made for consideration at the instance of any person, such person shall, in the absence of any contract to the contrary, be the first owner of the copyright therein. The object of Section 17 in general is to protect the economic interest of the person at whose instance the subject of the copyright is produced. This provision therefore, cannot defeat the copyright of the producer of "cinemautograph film", unless any agreement is made to the contrary. We must view this issue as simply as to draw a finer distinction between the 'ownership of a property' and 'intellectual property' involving copyright in the particular facts and circumstances of this case. It seems the concept of ownership and inte....
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....right to use the DVD or book would be governed by the copyright owned by "B";. thus it is possible one may be the owner of a material article and other may be the owner of a copy right. This distinction as such therefore has to be drawn in the light of the arguments raised based on Section 17(b) of the Copyright Act, 1957. 11. The arguments raised by the learned counsel for the assessee must be repelled for more than one reason. Section 17 provides safeguards to protect the economic interest of a person in the place of the author of the work. Copyright is an exclusive right given to the author or creator of the original work in relation to literary or dramatic works or similar works as referred in the Copyright Act. The author of the work ....