HARRISONS AND CROSSFIELD LTD Vs. STATE OF KERALA

JUDGEMENT

(1.) THE assessee , Messrs. Harrisons & Crossfield Limited, Quilon , is the petitioner before us. THE question of law raised for decision is formulated in the petition as follows: "whether on the facts and circumstances of the case, the fabrication of steel to the specification of the customers amounts to 'works contract' as defined in S. 2 (1) of the General Sales Tax Act?"

(2.) THE definition of the expression "works contract" is S. 2 (1) of the General Sales Tax Act, 1125, is: "works contract' means any agreement for carrying out for cash or for deferred payment or other valuable consideration the construction, fitting out, improvement or repair of any building, road, bridge or other immovable property or the fitting out, improvement or repair of any movable property. " THE contention of the assessee is that what we are concerned with are agreements for the 'fitting out' of movable property.

(3.) THERE is nothing on evidence to show that the customers of the assessee had any property in the goods until the fabrication is over and the delivery is effected. The entire case-law on the subject was reviewed by Chandra Reddy, C. J. , in (1960)11 STC. 498, and we consider it unnecessary to go over the ground afresh. The learned judge said: "it is sufficient to say that a transaction which results in the transfer of property in finished goods to a third party cannot be described as a works contract. " We find it impossible to construe the contracts before us as anything else or other than contracts for the sale of the fabricated material.