Satish Chandra, J. - (1.) THE assessee M|s. Ram Singh & Sons Engineering Works, Khatauli, District Muzaffarnagar, carries on the business of manufacturing and sale of sugarcane machines, parts and cranes, etc. For the assessment year 1965 -66 the books of accounts of the assessee were rejected, and the turnover was estimated at Rs. 11,30,236132, on which sales tax of Rs. 51,307/08 was imposed. Ac cording to the assessee, a turnover of Rs. 3,72,500 was not liable to tax, because it did not represent the proceeds of any contract of sale but of works contract, which did not attract sales tax. This turnover represented two transactions of supply of cranes installed at the site of the purchaser mills, namely, Upper Doab Sugar Mills Ltd., Shamli Mjs. Kamlapati Motilal Sugar Mills. Motinagar.
(2.) THE Sales Tax Officer repelled this contention of the assessee. He held that the substance of the contract was sale of ready -made cranes. The price that the purchaser paid was for the crane, though in fixing the price regard was kept for the installation and erection charges. The turnover was liable to sales tax. This view was up held in appeal. The assessee took the dispute to the Revising Authority. The Revising Authority considered the terms of the contract and the at tending circumstances, and held that the contract was an indivisible one and there was no element of sale of goods in it. Consequently the assessee was not liable to pay sales tax on this turnover. The Revising Authority went into the discrepancies pointed out in the assessee's books of accounts, and held that the books of accounts were properly maintained and were liable to be accepted. Accept ing the books of accounts, and deleting the turnover in respect of the two transactions of supply of cranes, the assessable turnover of the assessee was determined at Rs. 7,41,422/29.
(3.) AT the instance of the Commissioner, Sales Tax, the Revising Authority has referred the following questions of law for the opinion of this Court: - (1) Whether in the facts and circumstances of the case the turnover of Rs. 1,34,500.00 made by the assessee in respect of Kamlapati Motiial Sugar Mills amounts to works contract or sale of goods, if so, to what extent? (2) Whether in facts and circumstances, of the case the turn over of Rs. 2,38,000.00 made by the assessee in respect of Upper Doab Sugar Mills, amounts to a works contract or -sale of goods, if so, to what extent? ;