https://www.taxtmi.com/caselaws?id=127762 A repair contract for motor vehicles does not become a taxable sale merely because spare parts, consumed materials or fabricated parts are used and transferred in the course of the work. A sale requires a real agreement to transfer specific goods for a price; mere incorporation of materials into repairs is insufficient. On the facts, the workshop's bills and accounts separated outright spare-part sales from repair charges, and the fabricated parts were made incidentally for the repair rather than under any agreement of sale. The article explains that notional assessment of workshop turnover as sales of materials was therefore unsustainable, while actual spare-part sales remained taxable. en-us Tue, 02 Sep 1958 00:00:00 +0530 Sat, 16 Mar 2013 11:29:44 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=127762 A repair contract for motor vehicles does not become a taxable sale merely because spare parts, consumed materials or fabricated parts are used and transferred in the course of the work. A sale requires a real agreement to transfer specific goods for a price; mere incorporation of materials into repairs is insufficient. On the facts, the workshop's bills and accounts separated outright spare-part sales from repair charges, and the fabricated parts were made incidentally for the repair rather than under any agreement of sale. The article explains that notional assessment of workshop turnover as sales of materials was therefore unsustainable, while actual spare-part sales remained taxable. Case-Laws VAT and Sales Tax Tue, 02 Sep 1958 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=127762