RAM SINGH & SONS ENG. WORKS vs COMMISSIONER OF SALES TAX, U.P.

The Supreme Court held that the distinction between a contract of sale and a contract for work and labour hinges on the primary object of the contract. Under the primary test, if the main object is the transfer of property in a chattel, it is a contract of sale; if it involves the bestowal of labour and service, it is a contract for work and labour. The Court allowed the appeal, concluding that the contracts in question were for work and labour, thus not liable to sales tax as per the assessment year 1965-66.