2005 (2) TMI 519 - SUPREME COURT

Whether contracts entered into and executed by the assessee were contracts for sale and not works contract?

Held that:- Department's appeal is allowed. In the present case, on facts, it is find that the major component of the end-product is the material consumed in producing the lift to be delivered and the skill and labour employed for converting the main components into the end-product was only incidentally used and, therefore, the delivery of the end-product by the assessee to the customer constituted a "sale" and not a "works contract". Hence, transactions in question constitute "sale" in terms of entry 82 of the First Schedule to the said Act and, therefore, section 5G of the said Act was not applicable.