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
contract being one for sale of "bus bodies" belonging to the
appellants as well as to a contract for building bus bodies ... works contract
may undertake a more onerous liability than what is
prescribed by S. 151 of the Contract Act : see S. 152
Contract Act. Undoubtedly
contract is found at p. 423-424
"But if there was no such agreement and the
contract was only to construct a building,
then ... contract only on the theory of accretion".
This Court was dealing in that case with a contract to
construct a building and it held
value of the materials used in the execution of building
contracts within the taxable turnover of the company held
that the building contract ... individual sale of the
building materials comprised in the construction. It was
said by this Court that in a building contract the agreement
between
erroneous in law.
It appears that respondent No. 2 secured a building contract
from the Government in connection with the construction of
the Mint ... execution of the contract.
In connection with the execution of the said, contract,
respondent No. 2 obtained a supply of building materials
from the appellant
types
of contract. The contract there was for constructing and
fixing bus bodies on the chassis supplied by the Orissa
Government. The contract, infer alia ... bodies were delivered. Such a contract
was unlike a building contract or a contract under which a
movable is to be fixed on to another
surrender the site
on which he had erected a building, where he specifically
contracted that he would demolish the building and deliver
vacant possession ... nature of the building constructed, the
building materials to be used therein and the purpose for
which the building is to be utilized
there is nothing
to prevent the lessee's contracting to handover any building
or superstructure erected on the land by him to the.
lessors ... under s.108 the lessee has a right to remove the
building, by contract he may agree to hand over the same to
the lessor
open
to the States to levy sales tax on works contracts under any
Entry in List II of the Seventh Schedule to the
Constitution ... competent to impose a tax on the supply of
materials in building contracts and to impose it under the
name of sales
appellant State Government gave on a contract to a
contractor the work of construction of a building. The
contractor in turn gave that work ... ernment of Gujarat gave on contract to Bharat Sewak Samai
(Gujarat) the work of construction of a building for the
government litho-printing press. From
