Judgment

HEGDE, J.-These appeals by special leave arise from the decision of the High Court of Madhya Pradesh in references made to that Court under Section 44 of the Madhya Pradesh General Sales Tax Act, 1958 (to be hereinafter referred to as the Act).

2. The sole question that arose for decision in those references was whether the transactions referred to in those references are sales within the meaning of the Madhya Pradesh General Sales Tax Act, 1958 or whether they were merely works contracts. The High Court has opined that they were works contracts and as such the turnovers relating to those transactions are not liable to be taxed under the Act.

3. The facts material for the purpose of deciding these appeals are : The assessee entered into two contracts with the S. E. Railway for breaking stones and supplying ballast. Under the 1st contract he was to break stones into ballast and supply approximately 60,00,000 cubic feet of ballast at Rs. 27/6/- per cubic feet. Under the second contract, he was to supply in small slacks of a specified size at a flat rate of Rs. 35/- per 100 cubic feet. The general and special conditions of those contracts were the same. The quarry from which t