Judgment

SIKRI, CJI.:- In this appeal by certificate granted by the High Court of Mysore the only question involved is whether the delivery by the respondent - Hindustan Aeronauties Ltd - hereinafter referred to as the assessee - to the Railway Board of railway coaches model 407, 408 and 411 is liable to sales tax under the Central Sales Tax Act.

2. The Commercial Tax Officer, by assessment order dated March 28, 1964, in respect of the assessment year 1958-59, included the turnover in respect of the supply of these coaches. The Sales Tax Officer rejected the contention of the assessee that there was no sale involved in the execution of the works-contract in view of certain decisions of the High Courts; e.g., Mckenzies Limited v. State of Bombay, (1962) 13 STC 603 (Bom) and Jiwan Singh v. State of Punjab, (1963) 14 STC 957 (Punj).

3. In the appeal, the Deputy Commissioner of Commercial Taxes confirmed the order. In revision the Commissioner of Commercial Taxes also came to the same conclusion. He observed.

The contracts specifically mentioned that the under-frame shall always remain the property of the Railway Board. On the other hand, the order placed with the assessee company here w