https://www.taxtmi.com/caselaws?id=127635 An agreement requiring the transferee to pay the full price of machinery in instalments, while the transferor retained title only until full recovery, was treated as a hire-purchase arrangement rather than a mere hire. The court applied the principle that the substance of the contract must be gathered from the agreement as a whole and held that obligations such as maintenance and payment for spares were consistent with ownership in substance. A clause allowing the machinery to be taken back at residual value did not change the essential character of the transaction. The machinery transfer was therefore a sale within section 2(g) of the Bihar Sales Tax Act, 1947, and taxable as such. en-us Fri, 13 Jul 1956 00:00:00 +0530 Wed, 13 Mar 2013 12:56:50 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=127635 An agreement requiring the transferee to pay the full price of machinery in instalments, while the transferor retained title only until full recovery, was treated as a hire-purchase arrangement rather than a mere hire. The court applied the principle that the substance of the contract must be gathered from the agreement as a whole and held that obligations such as maintenance and payment for spares were consistent with ownership in substance. A clause allowing the machinery to be taken back at residual value did not change the essential character of the transaction. The machinery transfer was therefore a sale within section 2(g) of the Bihar Sales Tax Act, 1947, and taxable as such. Case-Laws VAT and Sales Tax Fri, 13 Jul 1956 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=127635