https://www.taxtmi.com/caselaws?id=157061 A contract for design, manufacture, supply, erection and commissioning of a product handling system was treated as a divisible composite contract rather than a pure works contract. Separate pricing and distinct terms for supply and for transportation, erection, testing and commissioning showed severable obligations, while the purchaser's right to reject the unit until successful commissioning indicated that property was intended to pass only after completion. Applying the dominant object test and the distinction between sale and work-and-labour contracts, the HC held that the supply element amounted to a sale of goods and the service element was incidental. The transaction was therefore taxable as a sale of goods, and the reference was answered against the assessee. en-us Thu, 06 Aug 1992 00:00:00 +0530 Mon, 30 Sep 2013 10:27:24 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=157061 A contract for design, manufacture, supply, erection and commissioning of a product handling system was treated as a divisible composite contract rather than a pure works contract. Separate pricing and distinct terms for supply and for transportation, erection, testing and commissioning showed severable obligations, while the purchaser's right to reject the unit until successful commissioning indicated that property was intended to pass only after completion. Applying the dominant object test and the distinction between sale and work-and-labour contracts, the HC held that the supply element amounted to a sale of goods and the service element was incidental. The transaction was therefore taxable as a sale of goods, and the reference was answered against the assessee. Case-Laws VAT and Sales Tax Thu, 06 Aug 1992 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=157061