Works contracts executed before the statutory amendment could not be taxed under the Central Sales Tax Act for the earlier assessment year.

Contracts executed for specific works at Mumbai and Secunderabad were held to be works contracts on the record, and the Tribunal's contrary view was not sustainable. Because the inclusion of works contracts within the definition of sale under Section 2(g) of the Central Sales Tax Act, 1956 took effect only from 11.05.2002, those contracts relating to assessment year 1999-2000 could not be taxed under the amended provision. The Tribunal's order was therefore set aside and the revision was allowed on the footing that the transactions were non-taxable for the relevant period.

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Issues: (i) Whether the contracts undertaken by the assessee were works contracts. (ii) Whether such works contracts, undertaken before 11.05.2002, could be brought to tax under the Central Sales Tax Act, 1956.

Issue (i): Whether the contracts undertaken by the assessee were works contracts.

Analysis: The contract documents showed that the assessee had entered into agreements for execution of specific works at Mumbai and Secunderabad. On the record, the Court found no reason to doubt the nature of the transactions as works contracts, and the Tribunal's contrary view was not sustainable.

Conclusion: The contracts were works contracts.

Issue (ii): Whether such works contracts, undertaken before 11.05.2002, could be brought to tax under the Central Sales Tax Act, 1956.

Analysis: The inclusion of works contracts within the definition of sale under Section 2(g) of the Central Sales Tax Act, 1956 was introduced only with effect from 11.05.2002. Since the contracts related to the assessment year 1999-2000, the later amendment could not govern them. The Court also relied on the earlier decisions cited in support of the assessee's position.

Conclusion: Such pre-11.05.2002 works contracts were not taxable under the Central Sales Tax Act, 1956.

Final Conclusion: The Tribunal's order was set aside and the revision was allowed on the assessee's claim that the disputed transactions were non-taxable works contracts for the relevant period.

Ratio Decidendi: A works contract executed before the statutory amendment that brought such contracts within the definition of sale cannot be taxed under the amended provision for an earlier assessment year.

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