https://www.taxtmi.com/caselaws?id=158777 The nature of a ship-building contract for sales tax purposes is determined by the substance of the agreement, including title, risk, payment structure, and contractual clauses, rather than by labels. Where the vessel was built for a fixed price, payments were linked to construction stages, and title and risk passed only on delivery, the agreement showed a completed sale of the finished article. Clauses on marking materials, insurance, and unused materials were treated as protective and not as transferring ownership during construction. The contracts were therefore sales and not works contracts under the Andhra Pradesh General Sales Tax Act, 1957, and the challenge to that classification failed. en-us Mon, 23 Dec 1996 00:00:00 +0530 Wed, 06 Nov 2013 18:30:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=158777 The nature of a ship-building contract for sales tax purposes is determined by the substance of the agreement, including title, risk, payment structure, and contractual clauses, rather than by labels. Where the vessel was built for a fixed price, payments were linked to construction stages, and title and risk passed only on delivery, the agreement showed a completed sale of the finished article. Clauses on marking materials, insurance, and unused materials were treated as protective and not as transferring ownership during construction. The contracts were therefore sales and not works contracts under the Andhra Pradesh General Sales Tax Act, 1957, and the challenge to that classification failed. Case-Laws VAT and Sales Tax Mon, 23 Dec 1996 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=158777