STATE OF ANDHRA PRADESH Vs. BHARAT DYNAMICS LIMITED

JUDGEMENT

(1.) This batch of revision cases arises out of a common question of law relating to the issue, as to whether the transaction constitute a contract of work or a contract of sale. Seven separate revision cases have been filed by the department against the common order of the Sales Tax Appellate Tribunal, Hyderabad, in appeals arising under the Central Sales Tax Act, 1956 and A.P. General Sales Tax Act, 1957 in respect of the assessment years 1971-72 to 1977-78. As common question of law is involved in all these revision cases, they are being dealt with under common order. The parties hereinafter will be referred to as they are arrayed before the Sales Tax Appellate Tribunal, Hyderabad.

(2.) The appellant - M/s. Bharat Dynamics Limited, Hyderabad, is a company incorporated under the Companies Act. It is a Government of India undertaking under the Ministry of Defence. According to the memorandum of association, the main objects of the company, among other things, relate to

(3.) Aggrieved by the assessment for the year 1971-72 the appellant-company preferred appeals to the first appellate authority. The first appellate authority held that the transaction representing supply of the defence equipment in question do not partake of the character of sale and that it was only a work carried out on behalf of Government of India. This order of the Assistant Commissioner was revised by the Deputy Commissioner by his order on the ground that the transaction effected by the appellant-company are in the nature of sales. In respect of the appeals for the subsequent years, the Assistant Commissioner dismissed the appeals holding that it is a transaction of sale. These appeals were filed by the assessee before the Tribunal against the orders of the Deputy Commissioner and also against the orders of the Assistant Commissioner. The question that fell for consideration before the Tribunal in the batch of appeals was :