Composite lift installation contracts are works contracts, not sales, where supply and commissioning form one project transaction.

A composite contract for the supply, erection and commissioning of lifts was treated as execution of project work rather than a taxable sale under entry 82 of the First Schedule to the Andhra Pradesh General Sales Tax Act. Applying the dominant nature of the transaction, the court accepted the Tribunal's view that such lift installation arrangements are works contracts and not sales. The revision failed on that basis.

---

---

Issues: Whether the assessee's activity of supply, erection and commissioning of lifts under a project contract constituted a sale under entry 82 of the First Schedule to the Andhra Pradesh General Sales Tax Act or a works contract.

Analysis: The activity undertaken by the dealer involved supply together with erection and commissioning of lifts as a composite project work. On the facts, the nature of the transaction showed execution of works rather than a taxable sale. The Tribunal's view was consistent with the prevailing judicial approach treating such composite lift installation contracts as works contracts and not sales under the relevant entry.

Conclusion: The activity was a works contract and not a sale falling under entry 82 of the First Schedule to the Andhra Pradesh General Sales Tax Act; the revision failed.

Ratio Decidendi: A composite contract for supply, erection and commissioning of lifts, where the dominant nature of the transaction is execution of project work, is to be treated as a works contract and not as a sale under the sales tax entry.

---