VARIETY BODY BUILDERS Vs. COMMISSIONER OF SALES TAX, GUJARAT

JUDGEMENT

(1.) THE only question which is involved in this reference is whether the contracts for body -building of railway coaches executed

(2.) THE short facts of the case are that Messrs Variety Body Builders, Baroda, who are the assessees in this case, have entered into three contracts for the construction of railway coaches on the underframes supplied to them by the railway. The first contract is dated 17th September, 1954, and is for the construction of 25 N. G. Coaches. The second contract is dated 11th July, 1956, and is for the construction of 6 T.L.R. Coaches and the third contract is dated 14th January, 1956, and is for the construction of 25 M.G. Coaches.

(3.) DURING the course of the assessment, the Sales Tax Officer found that the applicants had received some amounts on account of the above contracts for building coaches and that these amounts were not accounted for by the applicants for the purpose of computing their total turnover. The Sales Tax Officer was of the view that the contracts in question amounted to the sale of the coaches in question and, therefore, they were all contracts for sale of goods liable to be taxed under the provisions of the Sales Tax Act. He, therefore, carried out the assessment accordingly by adding the turnover represented by these three contracts. It is found that the assessment for the first period was of Rs. 2,72,803 -8 -0 while for the second period it was of Rs. 3,82,820.