merely enables
activation.
According to the petitioners prior to the 46th
amendment composite contracts were not exigible to States
sales tax under Entry 54, List ... contracts to
be subjected to sales tax. Therefore, even after the 46th
amendment other transactions had been held not to be
sales. Reliance has been
overcome such legal obstacle the Constitution was amended by 46th Amendment to include a wider definition of "tax on the sale or purchase ... Article 366. Clause (29A) of Article 366 as inserted by the 46th Amendment of the Constitution is quoted below:
(29A) 'tax on the sale
HISTORY
In the present case, the history as it prevailed before 46th Amendment is as
follows:
The liability to sales tax of the goods involved ... enacting history.
The Statement of Objects and Reasons for the 46th Amendment is, inter alia, as
follows:
"By a series of subsequent decisions
question was a single and indivisible works
contract. After the 46th Amendment the works
contracts which was an indivisible one is by a
legal fiction ... other for supply of labour and services. After
the 46th Amendment, it has become possible
for the States to levy sales tax on the value
Associated Hotel 's case pertained to the period prior to 46th amendment of the constitution and the Supreme Court on the basis of constitutional ... latter to the sales tax. This judgment has become irrelevant after 46th amendment of the constitution by which Article 336 (29A) of the constitution
value of services. In the above decision , the effect of the 46th amendment to the Constitution was also considered in regard to the definition ... amounted to "works contract". They took advantage of the 46th Amendment of the Constitution and the consequent amendment to the definition
transfer of goods involved in the execution of works contract. By 46th Amendment of the Constitution, the expression "tax on the sale or purchase ... goods" which was an undefined expression prior to the 46th amendment became a defined expression.
8. Right from the case of Gannon Dunkerley
basis of the agreement is a divisible contract.
13. After 46th amendment of the Constitution under Article 366(29-A) it has been provided that ... page-370. It was held that after the Page 1332 46th Amendment, the works contract, which was an indivisible one, is by a legal fiction
article 366 of the Constitution of India inserted by the Constitution (46th Amendment) Act, 1982 is extracted hereinbelow :
Article ... referred to above , makes it abundantly clear that with the 46th Amendment of the Constitution, a levy on the transfer of property in goods (whether
within the State's sales tax enactments. Hence, by the 46th Amendment of the Constitution, powers were given to the State Legislature to impose ... though single and indivisible, by legal fiction introduced by the 46th Amendment, has been altered into a contract, which is divisible into one for sale
