Works contract goods were not taxable as a sale before the 1984 amendment; tax applied only after express statutory inclusion.

Bricks used as an indivisible part of a works contract were not taxable as a sale under the pre-amendment regime of the Tripura Sales Tax Act, 1976. On the pre-1984 legal position under section 2(g), the transfer involved in execution of the works contract was treated as work and labour, not a sale, so sales tax could not be levied on the value of the bricks for assessment years before 12 July 1984. Taxability on transfer of property in goods used in works contracts arose only after insertion of section 3A(3), and the earlier assessment orders could not stand.

---

---

Issues: Whether sales tax could be levied on the value of bricks manufactured and used in execution of a works contract for assessment years prior to the amendment of the Tripura Sales Tax Act, 1976 in 1984.

Analysis: The contract was treated as one for work and labour, and the bricks used in improving roads formed an indivisible part of the works contract. Applying the earlier decision on similar facts and the pre-amendment legal position under section 2(g) of the Tripura Sales Tax Act, 1976, the transfer involved in the execution of the works contract was not treated as a sale for the relevant prior assessment years. Taxability on transfer of property in goods used in execution of works contract arose only from 12 July 1984 with the insertion of section 3A(3).

Conclusion: Sales tax could not be levied on the value of bricks used in the works contract for assessment years prior to 12 July 1984, and the assessment orders could not be sustained.

Ratio Decidendi: Materials used as an indivisible part of a works contract are not taxable as a sale under the pre-amendment regime; tax on transfer of property in goods used in such contracts applies only when the statute expressly brings such transfer within the charging provision.

---