COMMISSIONER, TRADE TAX Vs. ELECTRA (INDIA) LIMITED

JUDGEMENT

(1.) Present eight revisions under Section 11 of UP. Trade Tax Act (hereinafter referred to as "Ac") are directed against the orders of Tribunal relating to the assessment years, 1975-76, 1976-77, 1977-78, 1978-79, 1979-80, 1980-81, 1981 -82 and 1982-83.

(2.) In all the revisions, the only question raised by the learned Standing Counsel during the course of the argument relates to the taxability of the parts used in the repairs of the transformers.

(3.) The facts of the case stated in the order of the Tribunal are that the dealer/opposite party (hereinafter referred to as "dealer") entered into an agreement with the electricity boards of the various States for the repairing of their transformers. It was claimed that under he agreement, the contract was for repairing and testing of damaged distribution transformers, under which the dealer was required to open the transformers, remove the damaged parts and replacement, supply of parts, fitting, fixing and connection and completion in all respect etc. The price was stipulated as per Annexure 1, of the schedule of the price. The dealer claimed that the parts, which were replaced in the repairing of transformers, was tailor made i.e. as per requirement. It was claimed that one consolidated price for value of the parts, fitting, fixing, connection, etc was charged. In the circumstances, it was claimed that there was no sale of part and the nature of the work was works contract in which parts were used in the execution of the works contract. Assessing authority had not accepted the plea of the dealer and levied the tax on the value of the parts. First appellate authority has affirmed the view of the assessing authority. However, in second appeal, Tribunal accepted the claim of the dealer. Tribunal held that the contract was for the repair of the transformers and tailor made parts were used in the repairing and passed on not as a result of sale. It has been held that the nature of the work was works contract and not contract for sale.