<h1>Conflicting rulings on whether developers' construction for purchasers is a works contract subject to sales tax, causing uncertainty</h1> A Supreme Court ruling held that developers' construction of flats constituted a works contract and was liable to sales tax, prompting tax authority clarifications that created uncertainty about service tax applicability. A later high court decision reached the opposite conclusion, finding such construction not a works contract and therefore not subject to sales tax. The courts' divergent outcomes turned on a factual distinction: in the first case construction was carried out for and on behalf of the purchasers, whereas in the later case the developer built units not specifically for and on behalf of prospective allottees.