https://www.taxtmi.com/caselaws?id=98956 A lump sum building contract is not converted into a sale of goods merely because materials are used and incorporated in execution; the governing principle is that "sale of goods" carries the Sale of Goods Act meaning, so materials in a works contract are not taxable as sales absent a distinct agreement. Contract clauses requiring approval of materials or vesting while on site are treated as measures to secure performance, not as separate sale terms. Ancillary definitions of turnover and dealer cannot enlarge the charging provision where the underlying transaction is not a sale. The materials used in the works contract are therefore outside the sales tax levy. en-us Mon, 07 Apr 1958 00:00:00 +0530 Fri, 05 Sep 2014 18:59:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=98956 A lump sum building contract is not converted into a sale of goods merely because materials are used and incorporated in execution; the governing principle is that "sale of goods" carries the Sale of Goods Act meaning, so materials in a works contract are not taxable as sales absent a distinct agreement. Contract clauses requiring approval of materials or vesting while on site are treated as measures to secure performance, not as separate sale terms. Ancillary definitions of turnover and dealer cannot enlarge the charging provision where the underlying transaction is not a sale. The materials used in the works contract are therefore outside the sales tax levy. Case-Laws VAT and Sales Tax Mon, 07 Apr 1958 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=98956