Judgment

BHARGAVA, J. : This appeal under special leave granted by this Court arises out of proceedings for assessment of sales tax under the Bombay Sales Tax Act III of 1953. Messrs. Kailash Engineering Co (hereinafter referred to as "the respondent" was an engineering concern having their workshop at Morvi on the meter gauge Section of the Western Railway. They obtained a contract from the Western Railway Administration for construction of IIIrd class passenger coaches on certain conditions described as the conditions of tender. Under that contract which was reduced to writing and was described as an agreement, the respondent constructed three coaches and submitted a bill which was properly certified in accordance with the agreement by the Railway Administration on October 4, 1958. The net value of the work done by the respondent was certified at Rs. 1,22,035. After receipt of this money, the respondent wrote to the Additional Collector of Sales Tax requesting him under S. 27 of the Bombay Sales Tax Act, I953, to hold that this was a works contract, and that the transaction, in respect of which the respondent received the money, did not amount to a sale, so that no sales tax was p