The judgment of the Court was delivered by

KANIA, J. - This is a reference under section 61(1) of the Bombay Sales Tax Act, 1959, made at the instance of the assessee. The question, which has been referred to us, for our consideration is as follows :

"Whether the claim of the applicant that the true nature of the contract between the applicant and the Western Railway was an indivisible works contract and not contract of sale of goods, has been rightly rejected ?"

The facts giving rise to the reference are as follows :

The relevant period of assessment is 1st April, 1962, to 31st March, 1963. The assessees were contractors. By a contract dated 14th July, 1961, the assessees agreed to supply and lay two underground cables between Grant Road Sub-Station and Parel Meter House and one cable between Bandra Sub-Station and structure No. 12/12, as set out in the schedule to the contract upon general conditions of the contract and specifications of the Western Railway in conformity with the drawing annexed to the contract. The contract provided inter alia that the assessees would duly perform their works described in the schedule thereto and execute the same with great promptness,