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2019 (3) TMI 24 - HC - VAT and Sales TaxWhether the specific contract entered into by the assessee herein was for transfer of goods in the form of goods or not in the form of goods; the fact admitted being that it is a works contract? Held that:- It is a composite contract of supply of materials and labour. The work is of supply of materials which are to be fabricated in accordance with the specifications and measurements as stipulated by the awarder, attached to the plastic moulds of seats and fixed in the stadium. Going by the description of the work as also the classification of the different works involved, 86% involves fabrication and 14% involves supply of poly propylene chair which are also fixed in the fabricated steel frames - thus, the transfer is not in the form of goods. The goods in the form of stainless steel sheets are cut to size and fabricated into frames to which is fixed the seating element made of PVC, which as stand alone cannot be used as seats or sold as such in the market. In this case the State does not contest that the assessee executed a works contract; but, however, the contention is that there is transfer in the form of goods since the agreement has described it as “providing PVC chairs on stainless steel framework”. One has to look at the work description as such extracted herein above as available in the Annexure attached to the agreement. The description of the work as enumerated to the Department by the awarder also assumes significance - the Tribunal has correctly answered the question based on the various facts as found in the agreement and answer the question, though on facts, in favour of the assessee and against the Revenue. Revision dismissed.
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