JAGADISAN, J. - (1.) THE State of Madras is the revision petitioner. It questions the correctness of the order of the Sales Tax Appellate Tribunal, Madras, holding that the turnover of Rs. 98, 518 of the assessees (respondents) is exempt from taxation under the Madras General Sales Tax Act, 1939. The assessment year is 1955-56. The ground of exemption upheld by the Tribunal is that it relates to "works contracts" falling outside the ambit of the Act as laid down by the Supreme Court in Gannon Dunkerley's case and by this Court in Sundaram Motors case The Appellate Assistant Commissioner confirmed the finding of the Deputy Commercial Tax Officer that it related to works contracts and was as such assessable to the extent of 70 per cent. of the turnover. The Tribunal held that the contracts involved labour and skill and that each of the contracts was a composite bargain to furnish the customers of the assessees with an air-conditioning equipment, together with all materials and parts which were to be found and supplied by the assessees themselves. There was no element of sale of goods, according to the Tribunal in these contracts as they were in fact and in substance agreements to execute works for a stated consideration. The question of law that is raised is whether the turnover represents in part sale of goods and whether that part can be subjected to tax under the Act. The assessees are dealers in medicines, chemicals, typewriters, tractors and other articles and they are also engaged in the business of equipment buildings with air-conditioning plants. They undertakes to do the work on a lump sum basis for which details showing the cost of plant and accessory materials, labour charges and other miscellaneous expenses are given. The break-up of the turnover of Rs. 98, 518 is as detailed below :---------- T.O. Contract for the amount Name of the party Nature of contract periods Rs. A.P. 4, 130 5, 218-15-0 1. Indian Airlines False ceiling, Corporation. wiring and pipe laying. 5, 138 7, 580-14-0
(2.) UNITED Life Conversion of Assurance Co. air-conditioning equipment to A.C. 20, 650 30, 468-0-0 T. Kuppuswamy Supply and Naidu. installation of cold storage plant. 41, 300 59, 000-0-0
(3.) CARBORUNDUM Supply and erection Universal Limited. of air-conditioning equipment. 17, 640 26, 026-14-0;