CITATION:
1958 AIR 560 1959 SCR 379
ACT:
Sales Tax-Building contracts-Tax on supply of materials in
construction works--State's Power ... goods ", Meaning of-Legislative practice-Nature of agreement
in building, contracts Sale of Goods Act, 1930 (III of
1930), S. 4 Madras General Sales
materials in
a building contract and
335
that such a contract was one entire and indivisible. Unless
the contract was completed, the builder ... Legislature to levy sales tax on the
supply of building materials for execution of building
contracts came up for consideration before the Nagput High
Court
General Sales Tax Act, 1939,
empowering the State to assess indivisible building
contracts was ultra vires the powers of the State
Legislature. On 23rd March ... that
the contracts in question were indivisible works contracts.
At the outset it will be convenient to consider the question
whether the contracts in respect
characteristics or
elements of works contract. Learned senior counsel highlighted the
distinguishing features between “works contract” and “contract for sale of
goods” and having regard ... before becoming an immovable property though the
contract may be indivisible contract for construction of a building in the
form of an immovable property. Once
very goods in which eventually property passed. In a
building contract where the agreement between the parties was that the
GURBACHAN SINGH ... works contract are not the goods
involved in the execution of the works contract, but a
conglomerate, that is the entire building that is
actually
hypothesis that this contract contained, not only a contract for the purchase of the ship, but a separate contract for the purchase of the materials ... complete fallacy. There is only one contract--a contract for the purchase of the ship. There is no contract for the sale or purchase
Lindenau') (which contract has been described as 'Building Contract Part I') for acquisition of a Drillship to be built by Lindenau ... itself, the Appellants entered into another contract with the Respondents (which contract has been described as 'Building Contract Part II' and hereinafter referred
Lucknow. During the years 1953-56 the petitioner entered into four building contracts with the military department (hereinafter referred to a,s the employer ... contracts. It would require technical knowledge and long experience in the line for executing the works covered by the contracts. It is thus a contract
execution of a works contract.
Such a contract is not and cannot be a works contract. In a works
contract property gets transferred ... works contract is a contract to execute works and
encompasses a wide range of contracts. The expression works
contract is not restricted to building contracts
building and the question was whether the value of certain material used by the assessee in the execution of the building contract was liable ... only in respect of contracts which are single and indivisible and not of contracts which are a combination of distinct contracts for sale of materials
