Judgment

SARKARIA, J. :- Whether on the facts of this case, the contract dated 15-6-1968 between the Union of India and the Central India Machinery Manufacturing Company Ltd. (Wagon & Structural Division) Bharatpur (hereinafter called the Company) for the manufacture and supply of wagons, was a contract of sale or a work contract, is the principal question that falls to be determined in this appeal by certificate, filed by the Union of India against a judgment dated January 31, 1969 of the High Court of Rajasthan. It arises out of these facts;

The Company Respondent No. 1 herein entered into a contract (No. 67/RS (1)/954/15/396, dated 15-6-1968, with the Union of India through the Railway Board for the manufacture and supply of 258 BG Bogie covered BCX type wagons and 812 MG covered wagons of MBC type to the Railways. The sales-tax authorities of the State (Respondent 3 herein) under the Rajasthan Sales Tax Act, levied the sales tax treating the contract as one of sale and delivery of wagons. Under a similar past contract the appellant reimbursed the Company the amount of sales-tax for the wagons supplied by it to the appellant in the months of March and April, 1967. In March 1967, t