RAMASWAMI, J.

In these tax revision cases relating to the assessment years 1969-70, 1970-71 and 1971-72, the liability to tax of the turnover representing what is stated as rubberisation of steel wheels and top rollers, arises for consideration.

The assessee is a public limited company manufacturing and dealing in tyres. They have entered into a contract with the Government of India for rubberising the wheels and top rollers and the consideration to be paid is described at a particular rate for each unit. The contract entered into was in a standard form used for supply of goods for sale. The wheels and top rollers are manufactured and supplied by Messrs. Wheels India Limited to the Heavy Vehicles Factory at Avadi and the Central Vehicle Depot, Avadi, which are Government of India concerns. These wheels are intended for use in the construction of tanks for defence purposes. The wheels are delivered to the assessee for the purpose of rubberisation. The processes involved in rubberisation as given by the assessee are as follows :

"The metal wheels are stacked in rows of fours outside in open and sprayed with salt water and allowed to weather. The weathered wheels are then put in a degreasing plant to remove oil and other extraneous substances. The degreased wheels are grit-blasted on the rubberising surfaces. The rubberising surfaces are then coated with special solutions of metal-to-rubber-adhesives using hand brushes. A thin uncured compound (also called tie strip) is fitted on the wheel manually. Over this, a rubber based solution is applied and the solvent allowed to evaporate. Then a thick sheet of calendered uncured rubber compound is applied to the wheel and consolidated by hammering. The whole unit is then put inside a mould and put in an autoclave and steamed for a specified period to effect vulcanisation. Then the vulcanised wheel is removed from the mould, excess rubber, spews trimmed, and inspected and bare metal portions painted with primer coat." *

The rubberised wheels thus made ready for delivery have been delivered to the Heavy Vehicles Factory or such other party as the Government of India directs. It is also in evidence that once the wheel is rubberised, the rubberised portion cannot be dismantled or detached excepting through the process of destruction of the rubberised portion. That portion which is scraped and removed cannot also be again fitted on the wheel. The contract entered into, however, described the contract as one for supply of specific articles ordered. There was also a clause for payment of sales tax on the amount to be paid for each unit supplied. In all these assessment years, factually, the assessee raised invoices, claimed sales tax and recovered the same. The invoices specifically refer as sale of rubber. A certificate also was given by the assessee with reference to the amounts claimed as sales tax in the invoices to the effect that

"the goods on which sales tax has been charged have not been exempted under the C.S.T. Act or the State Sales Tax Act or the Rules made thereunder and the amounts charged on account of sales tax on these goods are not more than what is payable under the provisions of the relevant Act or the Rules made thereunder and certified further that, We, Dunlop India Limited, 5, Pattullos Road, Madras-2, are registered dealers in the State of Madras under local registration No. TNGST. 43809 and Central registration No. 5222/64-65 (Central) for purposes of sales tax." *

The assessee contended that the turnover relating to rubberisation of wheels and top rollers related to works contract. The assessing authority as well as the Appellate Assistant Commissioner rejected this contention and held that the turnover related to sale proceeds and not receipts in execution of works contract. The Tribunal held that the preparation of the surface, the putting of adhesive on the surface and the putting over it of the rubber compound and then vulcanising were all complicated tec