Summarize the following court judgment. vil Appeal Nos. 2346 47 of 1978 Etc. From the Judgment and Orders dated 5.8.1976 of the Madras High Court in T.C. Nos. 436 and 437 of 1971. R. Mohan and R.A. Perumal for the Appellant. T.A. Ramachandran and Mrs. Janaki Ramachandran for the Respondents. The Judgment of the Court was delivered by SABYASACHI MUKARJI	 J. Special leave granted in Special Leave Petitions (C) Nos. 10539	 4704 and 92 1 of 1979. 305 These appeals by leave under Article 136 of the Consti tution	 are from the orders of the High Court of Madras	 involving a common question though for different assessment years. It would be appropriate to deal with Civil Appeal Nos. 2346 47/78	 and the facts in other appeals are essen tially the same. The assessee in these cases had entered into contracts with the Universities and other educational institutions in the country for printing question papers for the said educa tional institutions. The assessee in the demand notes pre pared	 gave the charges for printing blocks	 packing charges	 handling charges	 delivery charges	 postage	 value of paper and value of packing materials separately in the relevant assessment years. The question involved is	 whether the taxable turnover should also include the printing and block making charges or not. It appears from the judgment of the High Court that for the assessment year 1966 67	 the printing charges amounted to Rs.99	675.00 and block making charges amounted to Rs.2	923.95	 totaling Rs.1	02	598.95. Similarly	 so far as the assessment year 1968 69 is con cerned	 the printing charges amounted to Rs. 1	33	137 and blockmaking charges amounted to Rs. 5	361.75 totaling Rs. 1	38	498.75. The controversy involved in these appeals was	 whether these two amounts were includable in the assessable turnover of the respondent in the respective years in question. The case of the assessee was that the contract entered into between her and the respective educational institutions was a contract of work and labour and in the performance of that contract	 incidentally she had to sell paper to them and	 hence	 except to the extent of the cost of paper	 in respect of the other amounts received by her she was not liable to pay sales tax. On the other hand	 the Government 's stand was that the contract was for the sale of printed materials by the respondent to the respective educational institutions and	 therefore	 the entire amount will have to be taken into account as turnover liable to tax. In other words	 would printing question papers and incidentally supplying the papers upon which such questions were printed	 entail the entire cost to be liable to sales tax. As was put before us	 the question is	 can one sell printed question papers and charge for the same? The High Court mentioned that till 1963 the assessee was herself doing the printing and the Tribunal held that during that period only the cost of paper was includable in the taxable turnover. With effect from 3.11.1963 the printing was done by a firm of which the assessee 's sons and daugh ters were partners. The contract	 however	 continued 306 to be entered into between the assessee and the respective educational institutions. According to the Govt. 	 as appears from the judgment of the High Court	 this made a difference and	 as such	 the order of the Tribunal in the previous years could not govern the assessment for the respective years referred to above. The Tribunal	 however	 held against the revenue holding that only the value of paper was liable to be included in the taxable turnover of the assessee. The correctness of that decision was challenged before the High Court by two Revision Cases under section 38 of the Tamil Nadu General Sales Tax Act	 1959 (hereinafter called 'the Act '). The High Court on an analysis of the facts and the several decisions came to the conclusion that printing of question papers involved confidentiality of the materials to be printed	 and held that apart from the paper nothing else could be includ ed in the total taxable turnover of the assessee. The High Court came to the conclusion that the contract entered into between the assessee and the University and other education al institutions was a composite contract i.e.	 a contract for work and labour	 as well as a contract for sale of the paper. It was contended on behalf of the revenue that in case of sale of all printed materials	 the sales tax was liable on the entire work. In that view of the matter if the liability for sale of printed material would include the entire price then there was no authority	 according to the revenue	 to treat the question papers differently. It is	 however	 clear as the High Court noted	 that the printing of question papers of educational institutions was an extremely and highly confidential matter. This is the first aspect of the matter which must be borne in mind. It was emphasised that such printing could not be entrusted to any press of one 's choice	 and the Universities and other educational institutions were only obliged to enter into such contracts with those in whom they have got the highest confidence so that the printer would not divulge the questions to be printed by him/her and will preserve the confidential nature of the transaction. Therefore	 in printing question papers entrusted by educational institutions to the printer the value included the price of the confidentiality and the confidence reposed in the printer. It has to be borne in mind that the price paid for such confidentiality and trust is not the price for the sale of goods. In case of printing of other materials just like letter heads	 bills	 account books or even printing works like a novel	 story	 poem or drama (subject to copyrights)	 the technical excellence and the professional efficiency of the printer	 among other things	 might enter into calculation for entrusting the job to a particular printer and the performance thereof. Howev er	 the position is different in case of printing of confi dential matters like question 307 papers of the Universities or other educational institu tions. The value paid for such printing job includes to a large extent the price of not only the technical and profes sional work but also the value	 if it could be measured in terms of money	 of the confidence and faith reposed that the printing materials should not be disclosed to anyone save to be returned back to the University or the educational insti tutions to be dealt with in accordance with its obligations. The High Court noticed these points and came to the conclusion that in view of these peculiar features which will be present in the printing of matters which are confi dential in nature and will not be present in other case the contracts pre dominantly being contracts for work with confidence and faith	 should be treated mainly as contracts for labour and not contracts for sale of any goods such as printed materials. It may be that in the execution of the contracts and for the purpose of completing the work	 the parties might enter into the contracts for sale of the paper and in this context	 it was a composite contract which can be split up into contract for sale of paper and contract for work and labour. Relying on a decision of this Court in Govt. of Andhra Pradesh vs Guntur Tobaccos Ltd.	 XVI STC 240	 the High Court was of the view that the cost of paper shown separately in the contract would be liable to tax and except for that cost of paper and the material supplied in other respect	 the contract was a contract for work and labour and there could not be any liability for sales tax. According to the High Court	 this would cover the printing charges. Blocks	 it was found	 were destroyed after the question papers had been printed. Hence	 there was no question of sale of blocks or passing of the property. The High Court so held. Following the aforesaid position in other matters which are the subject matters of other appeals where the _High Court held accordingly	 it dismissed the revision applica tion of the revenue. Aggrieved thereby	 the appellant has come up to this Court by leave. Our attention was drawn by both Mr. Mohan	 learned counsel for the appellant and Mr. Ramchandran	 counsel for the respondent to the decision of this Court in Govt. of Andhra Pradesh vs Guntur Tabacco Ltd.	 (supra)	 where this Court laid down that a contract for work in the execution of which goods are used may take one of three forms. The con tract may be for work to be done for remuneration and for supply of materials used in the execution of the works for a price; it 308 may be a contract for work in which the use of materials is accesssory or incidental to the execution of the work; or it may be a contract for work and use or supply of materials	 though not accessory to the execution of the contract	 is voluntary or gratuitous. In the last class there is no sale because though property passed it did not pass for a price. Whether a contract is of the first or the second class must depend upon the circumstances; if it is of the first	 it is a composite contract for work and sale of goods; where it is of the second category	 it is a contract for execution of work not involving sale of goods. In our opinion	 the aforesaid tests lay down correct criteria for determining the question. Mr. Mohan	 appearing for the revenue	 pressed before us that the said principle requires clarification. He emphasised that Press has no ownership over the materials or papers upon which the ques tions were printed. Who then	 Mr. Mohan posed	 was the owner	 author or the paper setter of the University or the educational institution or the printing Press? In our opin ion	 when the questions are set on a piece of paper and sent for printing the University remains the owner until it divulges these to the intending candidates or the students. But that is a matter which is relevant in the method of communication of the questions to the candidates appearing in the examination. The means employed for such communica tion entail use of mind	 confidence	 trust for the material	 paper and the technical skill of printing. It is a combina tion of these various factors that results in printing the question papers and the payment made in the process entails a composite payment for all these and can only be dissected and determined in the way laid down by the principle enunci ated in the aforesaid decision. Our attention was	 however	 drawn by Mr. Mohan to a decision of the Bombay High Court in Saraswati Printing Press vs Commissioner of Sales Tax	 Eastern Division	 Nag pur	 X STC 286. There the petitioner Press itself purchased the stationery and did printing work upon it according to the orders of individual customers and supplied the printed stationery to the customers. It was held that there the petitioner had produced a commercial commodity which was capable of being sold or supplied and when the petitioner sold the printed stationery to its customers	 it sold goods to the customers upon which sales tax was leviable. In those circumstances	 it was held that the transactions done by the said petitioner Press were not in the nature of works con tracts but were sales of goods and therefore recourse to rule 5(3) of the rules could not be made. It was further held that as the petitioner did not immediately dispose of the stationery purchased by 309 it in favour of its constituents	 but kept it in the Press and did printing work upon it and then supplied the finished product to its constituents	 the provisions of clause (iv) of Explanation I of clause (m) of section 2 were not at tracted. The High Court relied on the decision of the Allahabad High Court reiterating the principle that it is necessary to determine the substance of the contract	 and as the sub stance of the contract is that skill and labour that had been exercised for the production of the article and sale of material is only ancillary to that. In our opinion	 the principle upon which the High Court relied	 is not applica ble in case of transactions of printing of question papers. Question papers as such	 after being printed are neither available commercially nor available to any community commercial or otherwise	 save under specific circumstances for the candidates appearing at a particular time in an examination. Mr Mohan also drew our attention to the decision of Andhra Pradesh High Court in State of Andhra Pradesh vs Sri Krishna Power Press	 Vizianagaram	 XI STC 498. There	 the court reiterated that a transaction which results in the transfer of property in finished goods to another person cannot be described as a works contract. It was further held that where the assessee Press itself pur chased stationery and did printing work upon it according to the orders of individual customers and supplied the printed stationery to the customers at an agreed price the transac tion was sales liable to sales tax and not works contract. The fact that the goods prepared by the assessee could not be exhibited for sale to the general public is not decisive of the issue. According to the High Court the only test is whether the contract is for the sale of finished product. Mr. Mohan relying on the aforesaid observations submitted that the goods prepared by the assessee could not be sold to other customers	 the person who placed order could be com pelled to accept it or claim damages from the printers. He submitted that even in a case where goods are prepared according to the specific requisition to suit the require ments of individual customer	 yet printing materials sup plied thereto have been held to be sale of goods and he drew our attention to the several decisions referred to by the High Court of Andhra Pradesh in aid of his propositions. Normally	 it may be that the goods prepared by the assessee which could not be exhibited for sale	 would not be decisive of the matter and could in certain circumstances be sales liable to sales tax	 but in all circumstances it depends upon the nature of the sale and the nature of the transac tion involved. Printing of question papers at the behest of University or educational institutions is rather a delicate and confidential type of work and the price paid for supply ing such printed question 310 papers or printed matters entails primarily the confidence	 and secondly the skill and to a very small measure the material. If that is the position then	 in our opinion	 it cannot be categorised entailing sale of goods but it is rather a contract for works done. Mr. Mohan also relied on the decision of the Madras High Court in P.M. Venkatachalam Pillai vs The State of Madras	 XXIII STC 72	 where it was held that when a transaction is claimed to be a works contract	 a decision on the question depends on the particular facts. The primary point to bear in mind in such cases is what is the intention of the par ties viewing the transaction as a whole; do they intend an apportionment or view the transaction on compartmental basis as that which represents labour and that which represents sale of the materials. Different tests may be applied in answering such a question as the stage of passing of proper ty	 risk and the like. But all these tests converge towards finding out what is the intention of the parties. There	 the question was whether the assessee 's turnover consisted of the aggregate of labour charges and the cost of materials in printing work or of outright sales of finished commodity. The assessee relied on certain bills which showed the cost of materials and labour charges but he did not produce order books or other documents. The Tribunal found that the sepa rate entries were only a make believe apportionment for the purpose of sales tax and that what was sold was only a finished product. In those findings the Tribunal justified on the materials to uphold the liability for sales tax. As emphasised by the Division Bench of the Madras High Court	 the entire transaction should be viewed and the intention of the parties found out. Our attention was drawn by Mr. Mohan to the decision of the Orissa High Court in the case of State of Orisssa vs Ramnath Panda	 XXVlI STC 98. There the High Court held that in the case of an assessee	 a printer supplying printed materials	 where the customers supply paper and the assessee does nothing except printing on it	 the contract is one of labour and there is no sale. Where the customer enters into an agreement that he would separately pay for the paper and the assessee would merely print on it	 then also there is no sale. Where the customer does not enter into any separate agreement but merely asks the assessee to supply the printed materials	 the contract is indivisible and the supply of printed materials is a sale liable to sales tax. In such a case charging separately for the paper and printing in the bill issued to the customer does not alter the essential character of the agreement	 which is for the purchase of printed materials. 311 Our attention was also drawn to another decision of Andhra Pradesh High Court in S.R.P. Works and Ruby Press vs State of Andhra Pradesh	 XXX STC 195. There	 the petitioner was running a printing press	 supplying cinema tickets printed on paper of different colours to the customers. The customers obtained samples from the petitioner and then placed orders giving specifications. The petitioner while making out bills	 gave break up figures	 showing the cost of paper and the cost of printing separately and the total cost. The assessing authority assessed the petitioner only on the value of the paper for printing the tickets and granted exemption in respect of printing charges on the ground that they represented the cost of labour. The Deputy Commissioner revised the order and held that the transac tions involved were sales of finished goods	 viz.	 the tickets	 and not merely of paper. The Tribunal agreed with the finding of the Deputy Commissioner and confirmed the order. On a revision it was held by the High Court on a consideration of some of the orders placed by the customers	 that the orders were specifically for printing and supply of tickets. The fact that break up figures were given in the bills was not decisive or conclusive in determining the question whether there were two contracts one for supply of paper and the other for printing. We agree that the transaction under its true perspective must be viewed and the intention of the parties must be found out. Our attention was drawn to the decision of the High Court of Kerala in The Sales Tax Officer	 Special Circle 11	 Palghat vs 1. V. Somasundaran	 33 STC 68. In that case by printing something on paper	 as in .the cases of printing letter heads	 invitation cards	 wedding invitations	 judg ments of courts	 or ration cards	 the printed matter does not become "paper products" within the meaning of that expression in item 42 of Schedule I to the Kerala General Sales Tax Act	 1963. The High Court found that in such a case a further question arises as to whether it was sale of goods which could be taxed at all points. In order to spell out a contract of sale there must be an agreement which may be express or inferred from the circumstances. There can be an agreement for work and labour or there can be one for sale of goods. If essentially the agreement is one for work and labour	 complete exemption from taxation should be allowed. If	 on the other hand	 it is a contract for sale	 the whole turnover should be taxed. A contract for printing of judgment of courts is essen tially a contract for work and labour and there is no justi fication for bifurcating that contract into two different contracts	 one for cost of labour and 312 the other for sale of paper. Imposition of sales tax on the turnover relating to printing of judgments of courts is	 therefore	 unwarranted. In the case of contracts relating to the printing of ration cards	 it is in the nature of job works and it is essentially a contract for the sale of finished articles. In P.T. Varghese vs State of Kerala	 37 STC 171	 the assessee who was conducting a press and printing bill books	 vouchers	 receipt books	 letter heads	 question papers and notices as ordered by his clients contended that he only executed a works contract for which he used his own paper	 that the sale of paper used for printing could not be taxed under the Kerala General Sales Tax Act	 1963	 as he was not the first seller of paper in the State	 and that the remu neration received by him from his clients for the work and labour could not also be taxed under the Act. It was held that the question really was whether the contract was for the sale of paper as well as for work and labour or whether it was a contract for printed materials as such or whether it was a contract for work and labour. If it was a contract for sale of paper and for work it would be a composite contract where it might be possible to separate the sale from the work. If	 on the other hand	 it was a contract for printed materials	 what was sold was not paper	 but printed materials. If the contract was for work and labour	 in which the use of materials was merely accessory or incidental	 it would be a works contract which would not involve any sale and the charges received would not be assessable to tax under the Sales Tax Act; and that the assessee 's contract with the customers was not a contract for sale of paper in which labour was also involved making it a composite trans action which was capable of bifurcation into a contract for sale of materials and a contract for work and labour. What was sold was something other than paper. It could not be said that printed materials such as bills books	 vouchers and the like were mere paper or products of paper. Hence	 the supply of bills books	 vouchers etc. was liable to be taxed under the Act as finished products. It was further held that the question papers	 however	 were the subject matter of a contract for work and labour and the charges realised by the assessee for printing them were not liable to tax. The High Court at page 176 of the report observed: "Only in respect of those goods to which title has passed as a result of contract	 can it be said that the goods have been sold. Where a person buys a "Picasso" or a "Ravi Varma"	 he does not intend to buy or pay for the canvas or the paint	 although canvas and paint are involved in the production of 313 the painting	 and title to such materials is transferred to him. But such transfer of title to the materials is not pursuant to any agree ment for the sale of the materials as such. It would never have been in his mind to pay separately for the materials and for the labour. What the buyer buys is a finished product which is a work of article On the other hand	 when a person gets his manuscript print ed as an article or a book of verses	 the printer does no more than a mechanical or technical job. The printer does not create the article or the poem	 but merely renders his services to print which is in the nature of a job work. The manuscript as such is the result of the skill	 industry and scholarship of the author. In such a case	 there is no sale of the article or book by the printer; nor would it be possible in such a case to spell out an agreement for the sale of materials such as paper or ink	 which may have been incidentally used in the production of the printed work. While the painter sells a finished product which is a work of art	 quite distinct and different from the materials used in its pro duction	 the printer merely does a job work involving no sale; one is the work of an artist who is endowed with the finer qualities of imagination and taste and the other that of an artisan who is trained as a mechanic or technician A printer of judgments	 for exam ple	 does not produce and sell them; his work is purely that of a technician. This court has therefore held that printing of judgments is only a works contract. The work of a printer in certain cases may involve more than print ing; he may be a producer of finished articles such as bill books	 vouchers and the like. When such articles are printed and sold to the customers	 what is sold is not paper or paper products but printed materials which are finished products. Such contracts cannot be considered as contracts for the sale of paper coupled with an agreement to render service. The sale of paper had never been the subject matter of the agreement between the parties. Like in the case of painting which is a fin ished product being a work of art	 the bill books and voucher are new products being printed materials; and the sale of such goods does not involve a composite contract which can be bifurcated into an agreement for the sale of goods be they canvas and paint or paper and ink and an agreement for work." 314 In our opinion	 the High Court tightly applied the test in that case. Further	 our attention was drawn by Mr. Mohan to a decision of the Madras High Court in A.S. Hameed Bha rath Press vs State of Tamil Nadu	 54 STC 379. There	 the Tribunal found that the contracts between the assessee and his customers were indivisible contracts under which the assessee undertook to deliver printed material in accordance with the customer 's instructions and therefore considered the receipts in the assessee 's business as representing turnover in sales of goods taxable under the Tamil Nadu General Sales Tax Act	 1959	 and that the order form was a make believe and did not reflect the real nature of the transactions between the assessee and his customers. It was held that given the finding by the Tribunal	 the printed conditions in the order form were not to be accepted at face value and that the transactions between the assessee and the customers involved only the supply of printed material at a price. The High Court held that the decision of the Tribunal that the entire receipts in the assessee 's business must be held to be sales turnover liable to tax under the Act must be upheld. As mentioned hereinbefore	 the High Court was dealing entirely with sample printed materials of order forms of bill books. The Allahabad High Court had to consider this question in Commissioner of Sales Tax vs Uma Art Press	 56 STC 300. The decision in that case rested on the facts of that case and in the nature of the contentions urged before us in this case	 it would not be relevant to discuss the said decision in greater details. In Chandra Bhan Gosain vs The State of Orissa & Ors.	 XIV STC 766 at 769	 it was reiterated that in case of a composite contract how to determine whether there was sale of goods or there was works to be done depended upon the facts of each case	 and the intention of the parties	 what was the essence of the contract has to be found out. This court had to consider in C.S.T.	 Gujarat vs M/s. Sabarmati Reti Udyog Sahakari Mandali Ltd.	 38 STC 203	 whether the contract was a works contract or contract for sale. There the assessee had entered into a contract with the Public Works Department of the Govt. of Gujarat for the manufacture and supply of kiln burnt bricks to that department. The contract was found to be in a tender "for supply of materi als" containing a memorandum of the conditions. The nature of the work was described as "manufacturing and supplying kiln burnt bricks for construction". In the tender the assessee stated the condition and analysing the decision in the light of Chandra Bhan Gosain 's case	 this Court held that the contract was one for sale and not a works contract. 315 Mr. Mohan further drew our attention to the observations of the English decision in Marcel (Furriers) Ltd. vs Tapper	 There	 the defendant	 on behalf of his wife	 ordered from the plaintiffs	 a firm of furriers	 a mutation mink coat. The defendant 's wife selected skins of the colour she desired and specified the style of the coat she required	 directing that it should be made with the skins running horizontally. Her instructions were carried out	 but the coat was eventually rejected by her. The plain tiffs brought an action against the defendant claiming Pound 950 for work done and materials supplied in the making of the coat. By his defence the defendant pleaded that the contract was one for the sale of goods of the value of Pound 10 or over and was unenforceable pursuant to section 4 of the Sale of Goods Act	 1893 of England by reason of the fact that there was no note or memorandum in writing of the contract signed by the party to be charged or his agent. It was held that although a high degree of skill and craftsman ship might be required in making of the coat	 the contract was no more than one for the making of an article for the special use of the customer by someone whose business it was to make it. The nature of the transaction	 therefore	 was that it was one for the making and supply of a particular article at a price and not one for work and labour done and materials supplied	 and there being no memorandum in writing to satisfy the requirements of section 4 of the Sale of Goods Act	 1893	 the contract was unenforceable. Hence	 the principle following from the decision is that the nature of transaction has to be found out	 whether it is making and supply of particular article or printing material. Mr. Ramchandran	 however	 submitted before us that in view of the principles laid down by this Court in The State of Madras vs Gannon Dunkerley & Co. (Madras) Ltd.	 IX STC 353 and Hindustan Aeronautics Ltd. vs State of Karnataka	 55 STC 314	 the High Court was right. He submitted that the contract in essence was for supply of question papers which are not commercial commodities. The blank papers ceased to be the property of the dealer	 the moment questions were printed on these. These are the exclusive properties of the University or other educational institutions	 and were to be kept secret until the University chose to divulge these at the time of the examinations. The dealer cannot deal with the printed question papers. Upon printing he lost his capacity to contract	 ceased to be the sole owner	 and could not sell to anybody he chose. He had to hand over the entire question papers to the University. It was a special kind of job entrusted for confidence reposed and for the delicate matter of the job to be performed. The work in connection therewith was predominantly 316 in the transaction. The material and the skill in doing so	 both are incidental. In that view of the matter he submitted that the High Court was right	 and indeed a contract for sale pre supposes the capacity in the dealer to contract with regard to the finished item. For this	 reliance was placed on the observations of this Court in The State of Madras 's case (supra)	 and also on Hindustan Aeronautics Ltd 's case (supra) at pages 320	 323 & 327. The thing pro duced must have individual existence as the sole property of the party who produced it	 which can be passed on for a price	 in order to be a sale. Reliance was placed on the observations in Patnaik & Co. vs The State of Orissa	 XVI STC 364 and T.V. Sundram lyengar & Sons vs The State of Madras	 35 STC 24. The test is whether work and labour are bestowed on anything that can properly become the subject of sale. The court has to find out the primary object of the transaction and intention of the parties. In this connec tion	 it is necessary to rely on the observations of this Court in Hindustan Aeronautics Ltd 's case (supra) at pages 327	333 334 of the report. The primary difference between a contract for work or service and a contract for sale is that in the former there is in the person performing or rendering service no property in the thing produced as a whole	 notwithstanding that a part or even the whole of the material used by him may have been his property. Where the finished product supplied to a particular customer is not a commercial commodity in the sense that it cannot be sold in the market to any other person	 the transaction is only a works contract. See the observation in The Court Press Job Branch	 Salem vs The State of Tamil Nadu	 54 STC 383 and Commissioner of Sales Tax	 M.P. vs Ratna Fine Arts Printing Press	 56 STC 77. In our opinion	 in each case the nature of the contract and the transaction must be found out. And this is possible only when the intention of the parties is found out. The fact that in the execution of a contract for work some materials are used and the property/goods so used	 passes to the other party	 the contractor undertaking to do the work will not necessarily be deemed	 on that account	 to sell the materials. Whether or not and which part of the job work relates to that depends as mentioned hereinbefore	 on the nature of the transaction. A contract for work in the execu tion of which goods are used may take any one of the three forms as mentioned by this Court in The Government of Andhra Pradesh vs Guntur Tobaccos (supra). 317 In our opinion	 the contract in this case is one	 having regard to the nature of the job to be done and the confi dence reposed	 for work to be done for remuneration and supply of paper was just incidental. Hence	 the entire price for the printed question papers would have been entitled to be excluded from the taxable turnover	 but since in the instant case the deemed notes prepared by the assessee showed the costs of paper separately	 it appears that it has treated the supply of paper separately. Except the materials supplied on the basis of such contract	 the contract will continue to be a contract for work and labour and no liabil ity to sales tax would arise in respect thereof. The High Court was	 therefore	 fight in the view it took in Civil Appeals Nos. 2346 2347/78. The facts in the other appeals are identical. All these appeals are dismissed accordingly but without	 in the facts and circumstances of the case	 any order as to costs. G.N. Appeals dismissed.

The respondent had entered into contracts with Universi ties and other educational institutions for printing of question papers for them. In the demand notes prepared the respondent gave the charges for printing	 blocks	 packing handling	 delivery	 postal and also value of paper and value of packing materials separately in the relevant assessment years. On re examination the Assessing Officer noticed that printing charges and block making charges escaped assessment and brought them to tax. In respect of subsequent assessment also claims for exemption towards printing charges and block making charges were disallowed. The appeals preferred by the Respondents were dismissed by the Appellate Assistant Commissioner	 who reached a finding that the contracts were only for supply of printed question paper as a finished product and that there was no scope to disintegrate cost of paper with separate charges for printing and block making though the bills were made out in a different way. The respondent preferred appeals to Sales Tax Appellate Tribunal. The Tribunal held that the respondent was assessa ble only on the sale value of paper and that printing and block making charges were not to be included in the assess ment. Against the Tribunal 's Orders	 the appellant preferred tax cases before the High Court. The High Court dismissed the cases and held that the contract between the assessee and the Universities is of highly confidential nature and that the printing of question papers could be entrusted only to those in whom the institutions got the highest confi dence	 and that the price paid for such confidentiality and trust is not 302 the price for the sale of goods. The present appeals by Special Leave are against the High Court 's Orders. In this appeal	 it was argued on behalf of the appellant that printing charges and block making charges are includi ble in the assessable turnover of the Respondent. On behalf of the Respondent it was argued that the contract entered into between her and the educational institutions was a contract of work and labour and in the performance of the contract	 indicentally she had to sell paper to them and hence except to the extent of the cost of paper she was not liable to pay sales tax in respect of the other amounts receive by her. Dismissing the appeals	 HELD: 1.1 Contract for work in the execution of which goods are used may take one of three forms. The contract may be for work to be done for remuneration and for supply of material used in the execution of works in which the use of materials is accessory or incidental to the execution of the work; or it may be a contract for work and use or supply of materials	 though not accessory to the execution of the contract	 is voluntary or gratuitous. In the last class there is no sale because though property passed it did not pass for a price. Whether a contract is of the first or the second class must depend upon the circumstances; if it is of the first	 it is a composite contract for work and sale of goods; where it is of the second category	 it is a contract for execution of work not involving sale of goods. [307H; 308A B] 1.2 In each case the nature of the contract and the transaction must be found out. And this is possible only when the intention of the parties is found out. The fact that in the execution of a contract for work some materials are used and the property/goods so used	 passes to the other party	 the contractor undertaking to do the work will not necessarily be deemed	 on that account	 to sell the materi als. Whether or not and which part of the job work relates to that depends on the nature of the transaction. [316G H] 1.3 Normally	 it may be that the goods prepared by the assessee which could not be exhibited for sale	 would not be decisive of the matter and could in certain circumstances be sales liable to sales tax	 but in all circumstances it depends upon the nature of the sale and the nature of the transaction involved. Printing of question papers at the 303 behest of University or educational institutions is rather a delicate and confidential type of work and the price paid for supplying such printed question papers or printed mat ters entails primarily the confidence	 and secondly the skill and to a very small measure the material. If that is the position	 it cannot be categorised as entailing sale of goods but it is rather a contract for works done. [309G H; 310A] Government of A.P. vs Guntur Tobaccos Ltd.	 XVISTC 240 relied on. Hindustan Aeronautics Ltd. vs State of Kerala	 [1984] ISCC 706 and P.T. Varghese vs State of Kerala	 37 STC 1171 approved. Saraswati Printing Press vs CST	 Eastern Division Nag put	 X STC 286 and State of A.P. vs Sri Krishna Power Press	 Vizianagaram	 XI STC 498. P.M. Venkatachalam Pillai vs State of Madras	 XXIII STC 72; State of Orissa vs Ramnath Panda	 XXVII STC 98; S.R.P. Works and Ruby Press vs State of A.P.	 XXX STC 195 and STO	 Special Circle 11	 Palghat vs I. V. Somasundaram	 33 STC 68. A.S. Hameed Bharath Press vs State of Tamil Nadu	 54 STC 379; CST vs Uma Art Press	 56 STC 300; Chandra Bhan Gosain vs State of Orissa	 XIV STC 766; CST vs M/s Sabarmati Reti Udvog Sanakari Mandali Ltd.	 38 STC 203 and Marcel (Furri ers) Ltd. vs Tapper	 referred to. 2.1 The primary difference between a contract for work or service and a contract for sale is that in the former there is in the person performing or rendering service no property in the thing produced as a whole	 notwithstanding that a part or even the whole of the material used by him may have been his property. Where the finished product supplied to a particular customer is not a commercial com modity in the sense that it cannot be sold in the market to any other person	 the transaction is only a works contract. [316E] 2.2 When the questions are set on a piece of paper and sent for printing	 the University remains the owner until it divulges these to the intending candidates or the students. But that is a matter which is relevant in the method of communication of the question to the candidates appearing in the examination. The means employees for such communication entail use of mind	 confidence	 trust for the material	 304 paper and the technical skill of printing. It is a combina tion of these various factors that results in printing the question papers and the payment made in the process entails a composite payment for all these. Question papers as such	 after being printed are neither available commercially nor available to any community commercial or otherwise save under specific circumstances for the candidates appearing at a particular time in an examination. [308D E; 309C] Court Press Job Branch	 Salem vs State of Tamil Nadu	 54 STC 382 and CST vs M.P.V. Ratna Fine Arts Printing Press	 56 STC 77 approved. State of Madras vs Gannan Dunkerlay & Co. (Madras) Ltd.	 IX STC 353; Patnaik & Co. vs State of Orissa	 XVI STC 364 and T.V. Sundaram lyengar & Sons vs State of Madras	 35 STC 24 referred to. The contract in the present case is one	 having regard to the nature of the job to be done and the confi dence reposed	 for work to be done for remuneration and supply for paper was just incidental. Hence	 the entire price for the printed question papers would have been enti tled to be excluded from the taxable turnover	 but since the demand notes prepared by the assessee showed the costs of paper separately	 it appears that it has treated the supply of paper separately. Except the materials supplied on the basis of such contract	 the contract will continue to be a contract for work and labour and no liability to sales tax would arise in respect thereof. [317A C]