KAILASH ENGINEERING CO Vs. STATE OF GUJARAT

JUDGEMENT

(1.) This is a reference purported to have been made under sec. 61 of the Bombay Sales Tax Act 1959 Our attention has been drawn to the fact that this reference should really have been under sec. 34(1) of the Bombay Sales Tax Act 1953 Both parties agree that we should proceed to deal with this reference as if it was a reference under sec. 34(1) of the Bombay Sales Tax Act 1953

(2.) The applicants are an engineering concern having their workshop at Morvi on the meter-gauge section of the Western Railway. The Western Railway administration invited tenders for construction of III class passenger coaches on certain conditions described as the conditions of tender. The applicants tender was accepted by the railway administration and a contract in writing was entered into for the performance of the works of building erecting and furnishing 99 nonvestibuled bogie III class timber coach bodies on broad gauge under frames the underframes to be supplied by the railway administration. The applicants constructed three coaches in accordance with the terms of the contract and a bill containing the requisite certificates was prepared by the Railway on 4th October 1958 showing the net value of the work done by the company the amount certified being Rs. 1 22 35 The applicants made an application to the Additional Collector of Sales Tax under sec. 27 of the Bombay Sales Tax Act 1953 for the determination of the question whether the case fell within the definition of sale and whether they were liable to sales tax under the provisions of the Bombay Sales Tax Act 1953 The Additional Collector of Sales Tax by his order dated 29th June 1959 held that the transaction covered by the aforesaid bill dated 4th October 1958 was a sale and that tax was payable in respect of the same. The applicants preferred an appeal from that decision before the Sales Tax Tribunal. The Tribunal by its judgment dated 16th December 1960 dismissed the appeal. The matter has come up before us for the determination of the question following:

(3.) We shall first turn to the provisions of the Bombay Sales Tax Act 1953 Sec. 6 of the Bombay Sales Tax Act 1953 provides as under :