Composite works contract in ready mix concrete supply turns on integrated supply, transport and laying obligations at site.

A supply arrangement for ready mix concrete was treated as a composite works contract rather than an outright sale because the supplier was also obliged to transport the concrete to site, provide labour and technical support for laying it, and remain responsible for execution and quality. The absence of the words "works contract" in the agreement was not decisive where the substance of the contract showed an integrated obligation to supply and lay the concrete. On that footing, the transaction qualified for exemption.

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Issues: Whether the supply, laying and spreading of ready mix concrete at the customer's site constituted an outright sale or a composite works contract entitled to exemption.

Analysis: The contract required the assessee not merely to supply ready mix concrete, but also to transport it to the site, provide men, labour, skill and technical support for laying it in the specified area, and bear responsibility for the quality and for any leakage. The absence of the expression "works contract" in the agreement was not decisive where the substance of the arrangement showed an integrated obligation to supply and lay the concrete. The invoices and contractual terms supported the conclusion that the supply component was not separable from the laying activity.

Conclusion: The transaction was a composite works contract and not an outright sale; the assessee was entitled to the exemption.

Ratio Decidendi: Where an agreement obliges the supplier to provide both materials and labour for laying the goods at site, with responsibility for execution and quality, the transaction is a works contract even if the agreement does not expressly use that description.

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