https://www.taxtmi.com/caselaws?id=159433 A contract for removal of overburden at a mine was treated as a works contract, not as a hiring arrangement involving transfer of the right to use heavy machinery. The decisive test was whether possession, custody and effective control of the machinery passed to the other party; here, the contractor used its own machinery, labour and materials, was paid by volume of overburden removed, and retained control throughout. Mere nomenclature as a hiring contract did not alter the substance of the transaction. The court held that there was no transfer of the right to use goods, so the arrangement was not taxable as a sale under the Bihar Finance Act, 1981, and the demand was unsustainable. en-us Thu, 21 Aug 1997 00:00:00 +0530 Mon, 25 Nov 2013 14:40:58 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=159433 A contract for removal of overburden at a mine was treated as a works contract, not as a hiring arrangement involving transfer of the right to use heavy machinery. The decisive test was whether possession, custody and effective control of the machinery passed to the other party; here, the contractor used its own machinery, labour and materials, was paid by volume of overburden removed, and retained control throughout. Mere nomenclature as a hiring contract did not alter the substance of the transaction. The court held that there was no transfer of the right to use goods, so the arrangement was not taxable as a sale under the Bihar Finance Act, 1981, and the demand was unsustainable. Case-Laws VAT and Sales Tax Thu, 21 Aug 1997 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=159433