JUDGMENT

BHAGWATI J.:—This appeal by special leave raises the vexed question whether a particular contract is a contract of sale or a contract of work and labour. This has always been a difficult question, because most of the cases which come before the courts are border-line cases and the decisions given by courts are by no means uniform. But so far as the present case is concerned, it does not present any serious difficulty and is comparatively free from complexity or doubt, for there is a decision of this Court which is directly applicable and is determinative of the controversy between the parties.

2. The assessee who is the appellant before us is a private limited company carrying on business as engineers, contractors, manufacturers and fabricators and in the course of its business, it entered into a contract dated 28th June, 1972 with M/s C. M. Shah 7 Co. (P) Ltd. (hereinafter referred to as the Company) for fabrication, supply, erection and installation of Sentinels Pull Push type and reduction Gear Type Rolling Shutters in sheds Nos. 3 and 4 of the Sidheshwar Sahakari Sakar Karkhana belonging to the Company. The detailed specifications of the Rolling Shutters were given in t