N SRINIVASAMOORTHY Vs. STATE OF TAMIL NADU

JUDGEMENT

(1.) THIS tax (revision) case is filed against as order of the sales Tax Appellate Tribunal (Main Bench), Madras, in T. A. No. 668 of 1979 dated October 1, 1980.

(2.) BRIEF facts relating to the case are the following : the petitioner is not a registered dealer either under the Tamil Nadu General sales Tax Act, 1959, or under the Central Sales Tax Act, 1956. For the assessment year 1973-74, the Deputy Commercial Tax Officer, Adayar Division, by order dated April 18, 1978, determined the total and taxable turnover of the petitioner in a sum of Rs. 1, 76, 000 taxable at 3 1/2 per cent. In addition to the tax, the assessing authority also levied penalty in a sum of Rs. 9, 240 under section 12 (3) of the Act for not disclosing the turnover to the department till it was detected. The turnover, according to the assessing officer, represents the sale consideration received by the petitioner towards supply and fixing of auditorium chairs. On appeal, the Appellate Assistant Commissioner dismissed the appeal, confirming the assessment order, including the levy of penalty. On further appeal, the Sales Tax Appellate Tribunal, while confirming the levy of tax, reduced the penalty to Rs. 5, 000.

(3.) IN 1969 AIR (SC) 1245, 1969 (1) SCC 567, 1969 (3) SCR 505, 1969 (24) STC 349 (State of Rajasthan v. Man INdustrial Corporation Ltd.), the Supreme Court has held as follows : "held, on the facts, that the contract undertaken by the respondent was to prepare the window-leaves according to the specifications and to fix them to the building. There were not two contracts, one of sale and another of service. Fixing the windows to the building was also not incidental or subsidiary to the sale, but was an essential term of the contract. The window-leaves did not pass under the terms of the contract as window-leaves. Only on the fixing of the windows as stipulated could the contract be fully executed and the property in the windows passed on the completion of the work and not before. The contract was for execution of work not involving sale of goods. " * This decision of the Supreme Court definitely supports the case of the petitioner. Likewise, the decision in 1979 AIR (SC) 545, 1979 (43) STC 195, 1979 (1) SCC 487, 1979 (2) SCR 621, 1979 Taxlr 1716, 1979 UPTC 548, 1979 SCC (Tax) 71 (SC) 1979 AIR (SC) 545, 1979 (43) STC 195, 1979 (1) SCC 487, 1979 (2) SCR 621, 1979 Taxlr 1716, 1979 UPTC 548, 1979 SCC (Tax) 71 (Ram singh & Sons Engineering Works v. Commissioner of Sales Tax) approved the ratio laid down in 1969 AIR (SC) 1245, 1969 (1) SCC 567, 1969 (3) SCR 505, 1969 (24) STC 349 (SC) (State of Rajasthan v. Man INdustrial Corporation Ltd. ).