THE HON'BLE SRI JUSTICE B.PRAKASH RAO And THE HON'BLE SRI JUSTICE RAMESH RANGANATHAN WRIT PETITION NO.9803 OF 2010 ORDER: (Per the Hon’ble Sri Justice Ramesh Ranganathan) Heard Sri M.V.J.K.Kumar, learned counsel for the petitioner and the learned Government Pleader for Commercial Tax. At their request, the Writ Petition is being disposed of at the admission stage. The order under challenge in this Writ Petition is the order of the appellate authority rejecting the petitioner’s application seeking stay. The petitioner herein is a Government of India Public Sector undertaking. It was entrusted with the work of developing Prototype equipment in its manufacturing unit with the material entrusted to it by the Aeronautical Development Agency, Bangalore, an arm of the Ministry of Defence, Government of India. It is the petitioner’s case that all the materials, spare parts and other goods used by the petitioner has been supplied by the Government of India for being used in the works and, as such, the finished goods supplied by them to the Government of India does not involve transfer of property in goods, liable to be taxed either as sale or as a works contract. Sri M.V.J.K.Kumar, learned counsel for the petitioner would draw attention of this Court to an order of the Sales Tax Appellate Tribunal in Hindustan Aeronautics Limited, Balanagar, Hyderabad v. State of A.P. (order in T.A.No.86 of 2007 dated 31.12.2008); and to the interim order of the Supreme Court dated 11.05.2010, in a batch of Writ Petitions filed by different divisions of Hindustan Aeronautics Limited all over the country. The appellate authority rejected the stay application on the ground that the petitioner had failed to submit C-Forms for the turnover in question. No C-Form is required to be furnished if the transactions in question do not amount to a sale. The question, which necessitates examination, is whether there is transfer of property of the goods in question either as a sale or a works contract. In the light of the interim order passed by the Supreme Court in the order aforementioned, we are satisfied, prima facie, that the goods in question are not liable to be taxed either as a sale or a works contract. Since, however, a substantive appeal is pending before the appellate authority, we do not propose to examine this matter any further. Suffice to hold that, pending disposal of the appeal, the respondents shall not take coercive steps for recovery of the tax demanded. It is made clear that the appellate authority shall dispose of the appeal on merits uninfluenced by any observations made in the order hereinabove. The Writ Petition is, accordingly, disposed of. However, in the circumstances, without costs. _________________ (B.PRAKASH RAO, J) _______________________ (RAMESH RANGANATHAN, J) 23rd June 2010 RRB