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1983 (12) TMI 260 - SC - VAT and Sales TaxWhether the contract between the Union of India and the appellant for manufacture and supply of MIG engines was a contract of sale as contended by the revenue or a works contract as submitted by the assessee? Held that:- Appeal allowed. In the case of a contract for sale, the thing produced as whole has individual existence as the sole property of the party who produced it some time before delivery and the property therein passes only under the contract relating thereto to the other party for price. This cannot be said to be in respect of any of the items involved in these transactions. These transactions were carried out in implementation of the entrustment job for the manufacture by H.A.L. and all payments and actions taken in this behalf were on behalf of the Government of India. Therefore the Tribunal was in error in concluding that there was sale involved in these transactions.
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