STATE OF ORISSA Vs. RAMANATH PANDA

JUDGEMENT

(1.) THESE references relate to the quarters ending June, 1960, to December, 1961. The following questions have been referred to us :

(2.) THE short facts are that the assessee sold printed materials. In some cases paper was supplied to him, and mere printing was done on those papers. Such sales were exempted from sales tax as they were pure works contracts. There were however other cases in which the dealer himself supplied printed material.

(3.) THE sole question for consideration is whether in the facts and circumstances of this case, printed materials, where paper was not supplied, were liable to tax. Law is now well settled. The agreement between the parties may take carious shapes. If the purchaser supplies papers clearly the seller does nothing except printing on those papers. In such a case there is no sale. The work of the seller is one of labour. There may also be another type of cases where the purchaser enters into an agreement that he would separately pay for the papers and the seller would merely print on those papers. Such a case would be analogous to the first type of cases where the purchaser purchases the papers from outside and supplies the same to the printer. Another type of case would be where the purchaser does not enter into any separate agreement but merely asks the printer to supply printed materials. The obligation to purchase the papers and to print thereon remains with the seller. In such a case, the contract remains indivisible and what is agreed to be sold is the printed material.