https://www.taxtmi.com/caselaws?id=101263 Contracts for construction of railway coaches on underframes supplied by the railway administration were treated as works contracts, not sales of goods. The decisive test was the true intention gathered from the contract as a whole: the railway supplied underframes and some materials, retained close supervision and control, required progress certificates, running bills, security deposit, and completion within a fixed period, and the contractor's interest on insolvency or death was limited to payment for work already done. These features showed that execution of work and labour was dominant, while any transfer of property in materials was only incidental. Mere use of materials and delivery of finished coaches did not convert the arrangement into a sale. en-us Mon, 26 Apr 1976 00:00:00 +0530 Mon, 19 May 2014 16:50:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=101263 Contracts for construction of railway coaches on underframes supplied by the railway administration were treated as works contracts, not sales of goods. The decisive test was the true intention gathered from the contract as a whole: the railway supplied underframes and some materials, retained close supervision and control, required progress certificates, running bills, security deposit, and completion within a fixed period, and the contractor's interest on insolvency or death was limited to payment for work already done. These features showed that execution of work and labour was dominant, while any transfer of property in materials was only incidental. Mere use of materials and delivery of finished coaches did not convert the arrangement into a sale. Case-Laws VAT and Sales Tax Mon, 26 Apr 1976 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=101263