DY COMMISSIONER OF SALES TAX Vs. SREENI PRINTERS

JUDGEMENT

(1.) The State is before us. The year of assessment is 1976-77.

(2.) Facts lie in a narrow compass. The amount of Rs.1,18,801.29 representing the turnover of photo blocks supplied by the assessee in the assessment year to various parties though included in the return, was claimed to be not liable to be assessed under the Kerala General Sales Tax Act because the contracts under which the supplies were made did not involve sale of any materials. The contracts were all in the nature of works contracts The assessing authority did not accept this argument. The claim accordingly was disallowed. The Appellate Authority disposed of the appeal, the assessee had filed against the order of the assessing authority, with a direction to re-examine the claim afresh. The Department challenged the said order of the Appellate Authority before the Appellate Tribunal. The Appellate Tribunal, relying on a decision of the Supreme Court in Assistant Sales Tax Officer v. B. C. Kame (39 STC 237) held that in making the photo blocks and supplying them to the customers, there was no element of sale involved; the contracts essentially and indisputably were in the nature of works contract and therefore the assessee was entitled to the exemption claimed.

(3.) The questions of law raised for decision by the petitioner are:-