AIR 1965 RAJASTHAN 234 ::(1966) 17 STC 152 ::1965 RajLW 237 ::ILR (1965) 15 Raj 698

Rajasthan High Court

Hon'ble Judge(s): I. N. Modi, B. P. Beri , JJ

Rajasthan Sales Tax Act (29 of 1954) , S.2(o)— Sales Tax - Sale - Works contract - Contract for providing and thing special type steel windows in a building as per specifications - Assessee bound to complete work within stipulated time before it was entitled to payment - Contract mentioning a fixed sum for carrying work without indicating separately price for material and engineering skill - Contract is indivisible contract of work and not of sale and as such not liable to sales tax. From decided cases on works contract, the following principles are deducible : (1) The expression sale of goods in a nomen juris. It implies a transfer of movables from one person to another for consideration. An indivisible complete contract cannot be broken up into its component parts and one part thereof treated as a sale. AIR 1958 SC 560 and AIR 1958 SC 909 Rel. on. 2. Where by virtue of a composite contract involving the application of technical skill plants and machinery are fixed in the land of the employer by a contractor and the employer is charged by means of an all inclusive price, the contract is an indivisible contract of works and is not a one of sale. AIR 1961 SC 1615 and 1963-14 STC. 446 (Mad) Rel. on. 3. Even contract where the contractor affixes a structure on to a movable underframe supplied by the employer and the payment to the ....