https://www.taxtmi.com/caselaws?id=127177 Where a customer supplied yarn for dyeing and received the same yarn back on payment of charges, the Madhya Pradesh HC treated the arrangement as work and labour rather than a sale of goods. Because the principal materials remained the customer's property and the dyeing process merely added labour and materials by accession, no transfer of property in goods as such occurred. The relative proportion of material and labour did not change the legal character of the transaction. On that basis, the dyeing charges were not liable to sales tax, and the assessment treating the transactions as sales was set aside. en-us Wed, 30 Apr 1952 00:00:00 +0530 Wed, 27 Feb 2013 18:36:43 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=127177 Where a customer supplied yarn for dyeing and received the same yarn back on payment of charges, the Madhya Pradesh HC treated the arrangement as work and labour rather than a sale of goods. Because the principal materials remained the customer's property and the dyeing process merely added labour and materials by accession, no transfer of property in goods as such occurred. The relative proportion of material and labour did not change the legal character of the transaction. On that basis, the dyeing charges were not liable to sales tax, and the assessment treating the transactions as sales was set aside. Case-Laws VAT and Sales Tax Wed, 30 Apr 1952 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=127177