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TMI Blog1967 (4) TMI 185X X X X Extracts X X X X X X X X Extracts X X X X ..... . Whether a given transaction is a works contract or a sale of goods is a mixed question of law and fact, and will have to be answered invariably in relation to the terms of a particular contract. The test will be the intention of the parties as gathered from the entirety of the contract, whether on a fair reading of the contract the parties agreed to sell and purchase a finished or a completed article or commodity or meant to treat the transaction as one for labour to be bestowed on an article or commodity serving as the base. It may also be useful and necessary to keep in mind whether the transaction relates to a movable or an immovable. In the case of the latter the question will be whether the entire construction or product in the natur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cases will have to be reconciled only on that basis. For, in each case, the Court is concerned with the terms of the particular contract it is called upon to interpret. In T.C. No. 101 of 1964 the terms of the contract to build bus bodies on chassis supplied by Government Department are identical with those which the Supreme Court considered in Mckenzies Ltd. v. State of Maharashtra[1965] 16 S.T.C. 518. In fact the very dealer before us was also the dealer in that case. The Supreme Court, agreeing with the Bombay High Court, was of opinion that the contract was for sale of goods. In coming to that conclusion the Supreme Court said: "Reading the contract as a whole, we are in agreement with the High Court of Bombay that it is a contract ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rity between the contract relating to building of railway coaches on chassis supplied by the Department and the other type of contract involved in T.C. No. 101 of 1964. But we think that there is an essential difference between the two types of contracts, namely, that in the case of railway coach building, the property in the materials used in coach building seems to pass during the progress of the work and not necessarily at the end of it and at the time of delivery of the coaches. No doubt payment is made at so much per unit. But we find that at least part of the materials under the contract are supplied by the Department which go into the coach building. The coaches built up will have to be in accordance with the drawings and specificati ..... X X X X Extracts X X X X X X X X Extracts X X X X
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