TaxTMI 
TaxTMI 
2006 (11) TMI 216
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....available with the Board, the petitioner may provide the required quantity for the work at his own cost, and recover the same out of the final bills; the petitioner has to return the excess materials and gunny bags after the completion of the work; the income-tax payable on the contract amount bill would be deducted from and out of the payment to be made to the petitioner in accordance with the provisions of the Income-tax Act, 1961 as tax deducted at sources (TDS); the payment of the Sales tax, if any made applicable by the Government of Tamil Nadu for the pole manufacturing works shall be borne by the Board and the contractor is entitled to make claim if any on production of the notice issued by the Government of Tamil Nadu, the said contract was for sale of goods, viz., RCC Poles or contract for work, for the supply of the labour, out of the materials supplied by Board. 2. To decide the above question, we are constrained to look into the essence of the agreement and find out what was the intention of the parties in making the contract, viz., Manufacture of RCC Poles and Grills out of the materials supplied by the Board and transfer to the Board; and to decide whether such tra....
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....lity or sufficient quantity from the source, he shall so state clearly in his tender and state where from he intents to obtain materials subject to the approval of the Assistant Engineer. 3.2.5 The agreement specifically provides that the tenderer shall execute the work for the Board by piece-work. 3.2.6 Schedule-B of the agreement deals with the submission of tender and clause 1.7 (a) provides that the allotment of work shall be according to the capacity of the contractor and may be varied from time to time to suit the exigencies and overall programme of work. 3.2.7 Clause 2.0 of Schedule-B of the agreement provides that income-tax payable on the contract amount at the appropriate rate levied from time to time will be deducted from and out of the payment to be made to the contractors in accordance with the provision of the Income-tax Act, 1961 as amended from time to time. 3.2.8 Clause 10.1 of Schedule-B of the agreement provides that the Board's officers should have free access to inspect and examine the workmanship, materials used, etc., at any time and qualified supervisory staff of the contractor should be available at site so that clarifications if any require....
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....rom and out of the payment to be made to the contractors in accordance with the provisions of the Income-tax Act. 3.2.18 Clause (6) of Schedule 'E' of the agreement provides that the contractor should return all the materials, if any, after completion of work. If not returned, recovery will be made at the rates prevailing in the Board with other charges without intimation. 3.2.19 Clause (8) of Schedule 'E' of the agreement provides that great care should be taken to preserve and return the gunny bags to the department. Recoveries for the empty gunny bags not returned in good condition will be charged at Rs. 1.50 per bag from the contractor's bill. 3.2.20 Clause (13) of Schedule 'E' of the agreement provides that the payment of the Tamil Nadu Government Sales Tax if any made applicable by the Government of Tamil Nadu for this pole manufacturing works will be borne by the Board and have the contractor is entitled to make claim if any on production of notice issued by the Government of Tamil Nadu. 4. Under the above terms and conditions of the agreement entered into between the petitioner and the Board, the Assessing Officer, by order dated 24-2....
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....the right to use any goods for any purpose (whether or not for a specified period) for cash, deferred payment or other valuable consideration; (v) a supply of goods by any unincorporated association or body of persons to a member thereof for cash, deferred payment or other valuable consideration; (vi) a supply, by way of or as part of any service or in any other manner whatsoever, of goods, being food or any other article for human consumption or any drink (whether or not intoxicating) where such supply or service is for cash, deferred payment or other valuable consideration, and such transfer, delivery or supply of any goods shall be deemed to be a sale of those goods by the person making the transfer, delivery or supply and a purchase of those goods by the person to whom such transfer, delivery or supply is made." Section 2(u). - "works contract" includes any agreement for carrying out for cash, deferred payment or other valuable consideration, the building, construction, manufacture, processing, fabrication, erection, installation, fitting out, improvement, modification, repair or commissio....
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....sued by the Government of Tamil Nadu, as the same is a works contract. 11. When raw materials supplied by Board are used for the manufacture of the RCC poles, it is beyond one's imagination as to how the RCC poles be sold to the owner of the raw materials himself, as there should be a transfer of the property in goods from one person to another as per the definition of "sale" defined under Section 2(n) of the TNGST Act. The express terms of the agreement in question provides that cement, sand, water and everything is supplied by the Board and the petitioner cannot sell the same assuming, after manufacturing the same into a finished product, to the owner of the raw materials itself. What was added by the petitioner in the process of the manufacture is only value of work or labour, as clearly mentioned in the agreement itself as a works contract. 12. That apart, it is trite that when a word or a phrase is defined as having a particular meaning, it is that meaning which must be given to it, in interpreting a section of the Act, unless there is something repugnant in the context, when a legislature defines the language it uses, its definition is binding upon the Court and thi....