https://www.taxtmi.com/caselaws?id=149843 Supply of raw materials by an assessee to its constituent units for making shoes and boots was analysed as a transaction for sales tax purposes under the U.P. Sales Tax Act. The arrangement showed that the assessee controlled the supply, retained the materials' ownership, and received no price at the time of transfer; surplus materials could be returned or dealt with as directed, and the members were paid only manufacturing value after deducting material cost. Mere book entries describing the arrangement as a sale did not alter its true legal character. On these facts, property in the raw materials did not pass to the members, so the supply was not a taxable sale. en-us Thu, 29 Jan 1970 00:00:00 +0530 Sat, 04 May 2013 12:53:01 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=149843 Supply of raw materials by an assessee to its constituent units for making shoes and boots was analysed as a transaction for sales tax purposes under the U.P. Sales Tax Act. The arrangement showed that the assessee controlled the supply, retained the materials' ownership, and received no price at the time of transfer; surplus materials could be returned or dealt with as directed, and the members were paid only manufacturing value after deducting material cost. Mere book entries describing the arrangement as a sale did not alter its true legal character. On these facts, property in the raw materials did not pass to the members, so the supply was not a taxable sale. Case-Laws VAT and Sales Tax Thu, 29 Jan 1970 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=149843