SAHAJ RAM REHANDMAL Vs. COMMISSIONER OF SALES TAX

JUDGEMENT

(1.) THE petitioner entered into an agreement with the North Eastern Railway "for the manufacture and supply of quarry products from a private quarry at Kanakpur". The Railway paid the petitioner on account of the ballast and boulders supplied by the petitioner at certain rates specified in the schedule of rates, which was made part of the contract. The contract also included a list of special conditions.

(2.) IN the assessment proceedings for the assessment years 1958-59, 1960-61, 1961-62 and 1962-65 the Sales Tax Officer assessed the petitioner to sales tax upon the turnover of the ballast and boulders. In appeal by the petitioner the Judge (Appeals) Sales Tax confirmed the assessment in respect of ballast and boulders. The petitioner proceeded in revision before the Judge (Revisions) Sales Tax but was also unsuccessful there. At the instance of the petitioner the following question of law has been referred in the instant case for the opinion of this Court :

(3.) WE have heard the learned counsel for the parties, and we have also come to the same conclusion. The river-bed containing the ballast and boulders belonged to the Forest Department. The dealer paid royalty to the Forest Department for the right to collect and remove them. They were cut down to size and shaped to conform to certain specifications and then transported to the railway sidings Payment was to be made only on measurement. We are referred by the learned counsel for the dealer to paragraph 14 of the Special Conditions of Contract. Paragraph 14 is set out hereunder :-