PATNAIK & COMPANY vs STATE OF ORISSA

The Supreme Court held that the contract for building bus bodies on chassis supplied by the State Government constituted a contract for the sale of goods under the Orissa Sales Tax Act, 1947. The Court determined that property in the bus body did not pass until the entire vehicle was delivered, thus making the amounts received chargeable to sales tax. The judgment distinguished previous cases, affirming that the supervision of the manufacturing process by the purchaser does not negate the nature of the contract as a sale of goods.