TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
Use comma for multiple locations.
---------------- For section wise search only -----------------
Accuracy Level ~ 90%
of 
Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
Join Channel
Note
Bookmark
Share
Don't have an account? Register Here
of Press 'Enter' after typing page number.
Issues: Whether the agreement for manufacture and supply of RCC poles using raw materials supplied by the Board was a works contract or a sale of goods.
Analysis: The agreement required manufacture of RCC poles from materials supplied by the Board, return of excess materials, and deduction of tax as in a works contract. Under the statutory definition, a sale requires transfer of property in goods from one person to another, while a works contract includes manufacture carried out for consideration. Since the raw materials belonged to the Board and the contractor only added labour and work, there was no sale of finished goods to the owner of the materials. The statutory definitions were held to be controlling in characterising the transaction.
Conclusion: The transaction was a works contract and not a sale of RCC poles; the assessee succeeded on this issue.
Final Conclusion: The assessment order was set aside, the Special Tribunal's view was rejected, and the assessee was held not liable for the impugned penalty.
Ratio Decidendi: Where materials are supplied by the customer and the contractor only carries out manufacture for consideration, the transaction is a works contract if the statutory definition so provides, and no sale arises in the absence of a transfer of property in goods from one person to another.
TaxTMI 
