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PETITIONER: M/S. DAMODAR VALLEY CORPORATION
Vs.
RESPONDENT: THE STATE OF BIHAR
DATE OF JUDGMENT: 21/11/1960
BENCH: SINHA, BHUVNESHWAR P.(CJ) BENCH: SINHA, BHUVNESHWAR P.(CJ) IMAM, SYED JAFFER SARKAR, A.K. SUBBARAO, K. SHAH, J.C.
CITATION: 1961 AIR 440 1961 SCR (2) 522
ACT: Sales Tax-Liability-Agreement to supply equipment and machinery to contractor--If a sale or hire-Test-Bihar Sales Tax Act, 1947 (19 of 1947) S. 2(g), 13(5), 25.
HEADNOTE: The appellant Corporation was assessed to sales tax under S. 13(5) of the Bihar Sales Tax Act, 1947, on the price of machinery and equipment, amounting approximately to Rs. 42,63,305, supplied to two contractor firms on the basis of an agreement which it entered into with them for the construction of a dam. The agreement provided, inter alia, that the price of the machinery and equipment supplied was to be paid by the contractors and until that was done they were to remain the property of the Corporation. It was further agreed that the Corporation would take them over after the completion of the work at their residual value, to be calculated in the manner set out in the agreement, provided that they were properly looked after during the period of operation; and if the contractors so chose earlier, if they were declared surplus and certified as such by the consulting Engineer. The price was t...