Content Provider | Supreme Court of India |
---|---|
e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Works contracts Orissa Sales Tax Act 1947 |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Act(s) Referred | Orissa Sales Tax (amendment) Act, 1974 (18 of 1974) |
Case(s) Referred | Referred Case 0 Referred Case 1 Referred Case 2 |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Dismissed |
Headnote | Orissa Sales Tax Act, 1947 – ss.2(g),(jj) & 5(2)(AA) – Amendment in 1947 Act for levying sales tax on works contracts – Circular dated 04.11.1986 issued for reimbursement of sales tax paid by contractor in case of works contracts executed on or after 07.04.1984 on production of proof thereof – Works contracts executed by respondent no.1 – Sales tax levied for 1998-99 to 2000- 01 on the taxable turnover – Respondent claimed reimbursement – In the meantime, in view of another Circular, it was directed that no reimbursement of sales tax be made under Clause 45.2 of General Conditions of Contract (GCC) until further clarification – By impugned Circular dated 07.11.2001, State Govt. instructed not to reimburse the sales tax levied on cement, steel etc. and directed for its recovery wherever reimbursed – Quashed by High Court – Held: Grounds on which the appellant resists respondent’s claim for reimbursement, i.e., w.r.t the expression”completed item of work” in Clause 45.2, stipulations contained in Clauses 13.3 of Instructions to Bidders (ITB) and 45.1 of GCC, are untenable – Contents of initial Circular dated 04.11.1986 issued by State Govt. closely following the amendment of 1947 Act aimed at facilitating the levy of sales tax on the goods involved in a works contract – In said Circular, the State Govt. issued directions for reimbursement of sales tax w.r.t the existing work contracts; and also directed that any such clause for reimbursement be not included in future contracts – Second set of instructions of the said Circular was obviously meant for future contracts and fortifies the conclusion that State Govt. was fully conscious of its obligation to make reimbursement w.r.t the existing contracts carrying such reimbursement clause/s – High Court rightly allowed the writ petition filed by respondent no.1 – Propositions in ill-advised Circular dated 07.11.2001 stand disapproved – Constitution (Forty-sixth Amendment) Act, 1982 – Art.366(29-A) – Orissa Sales Tax (Amendment) Act, 1984 – Orissa Sales Tax (Amendment) Act, 1985 – Contract. |
Judge | Hon'ble Mr. Justice Dinesh Maheshwari |
Neutral Citation | 2020 INSC 414 |
Petitioner | State Of Orissa |
Respondent | M/s. B. Engineers & Builders Ltd. & Ors. |
SCR | [2020] 6 S.C.R. 801 |
Judgement Date | 2020-06-05 |
Case Number | 2516 |
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