Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | State's power of taxation on supply of materials Building contracts Sales Tax |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Act(s) Referred | East Punjab General Sales Tax Act, 1948 (46 of 1948) Government of India Act, 1935 (0 of 1935) |
Case Type | Writ Petition |
Court | Supreme Court of India |
Disposal Nature | Petition Allowed |
Headnote | • Pandit Br1narsi na, v. The State of Illadhya Pradesh Bose ]. April 7, 438 SUPREME COUitT REPORTS [1959) BosE J.-I agree except that I prefer not toexpress an opinionabout the validity of the powerconferred on the State Governmentby s. 6(2) of the Central Provinces and Berar Sales Tax Act, 1947, to amend the schedulein the way in which it has beenamended here.I wouldleave that open forfuture decision. Appealsallowed. FIItlI OF M/S. PEAitE LAL HAitl SINGH v. THE STATE OF PUNJAB & ANOTHEit • (S. It. DAS C. J., VENKATARAMA AIYAR, s. K. DAS, A. K. SARKAR and VIVIAN BosE JJ.) Sales Tax-Building contracts-State'spower of taxation on supply of materials in construction works-Whether buildingcontract comprises a distinctagreementfor sale of materials-East Punjab GeneralSales Tax Act, z948 (East Punjab XLVI of z948), ss. ; tions, but they are unsubstantial and may be shortly disposed of. ·One was that in the definition of "turn over " in s. 2 (j), cl.(ii) whichis what is applicable to the presentcase, there is noreference to sale of goods, and that, accordingly,even if Entry 48 in List II is to be interpreted in a widesense, the provision as actually enacteddoes not, in fact, tax the supply of materials in workscontracts,treating it as a sale. But the charg ingsectionis s. 4 (1), which n1akes it clear that the tax is onthegross turnover in respect of saleseffected after the cominginto force of the Act, and the obvious intentionis toinclude the supply of materials in works contracts within the category of taxable turnover. It was next contended that the definition of" dealer " ins. 2(d)required that the personshouldbe en~aged in the business of selling or supplyinggoods, that the petitionerswhowere building contractorswere not engaged in the business of selling or supplyinggoods but of constructingbuildings, and that therefore they were not dealers within that definition, and that as under s. 4 the tax couldbe imposedonly on a dealer, the petitionerswere not liable to be taxed. But if the Sl.J1lply of materials in constructionworks can be regarded as asale, then clearlybuildingcontractors are engaged in the sale of materials, and they would bewithin the definition of "dealers " under the Act. Thereis nosubstancein thiscontentioneither. Thepetitioners,however, are entitledto succeedon the ground that the impugnedprovisions are not w,ithin the authority conferred by Entry48, and a writ of prohibitionshould accordinglyissue restraining the respondents from taking proceedingsfor a~sessment of tax in respect, of materialssupplied by the petitioners.' inconstructioncontracts. We direct the parties to . . beartheirown costs. Petitionallowed . • • • ' |
Judge | Hon'ble Mr. Justice T.L Venkatarama Aiyyar |
Neutral Citation | 1958 INSC 37 |
Petitioner | Firm Of M/s. Peare Lal Hari Singh |
Respondent | The State Of Punjab & Another |
SCR | [1959] 1 S.C.R. 438 |
Judgement Date | 1958-04-07 |
Case Number | 128 |
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