https://www.taxtmi.com/caselaws?id=103520 A deemed sale in a works contract is subject to the constitutional limits applicable to ordinary sales under entry 54 of List II and article 286, so a State cannot tax transfers falling in inter-State, outside-State, import, or export transactions; the Central Sales Tax Act, 1956 applies to those transfers. The tax base is the value of goods involved in the works contract after permissible deductions for labour and service components, including related planning, design, machinery hire, consumables, and attributable overhead and profit, with case-specific determination of deductions. Section 5(3) of the Rajasthan Sales Tax Act, 1954 and rule 29(2)(i) of the Rajasthan Sales Tax Rules, 1955 were treated as unconstitutional for widening the charge beyond constitutional competence. en-us Tue, 17 Nov 1992 00:00:00 +0530 Fri, 24 Oct 2025 10:48:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=103520 A deemed sale in a works contract is subject to the constitutional limits applicable to ordinary sales under entry 54 of List II and article 286, so a State cannot tax transfers falling in inter-State, outside-State, import, or export transactions; the Central Sales Tax Act, 1956 applies to those transfers. The tax base is the value of goods involved in the works contract after permissible deductions for labour and service components, including related planning, design, machinery hire, consumables, and attributable overhead and profit, with case-specific determination of deductions. Section 5(3) of the Rajasthan Sales Tax Act, 1954 and rule 29(2)(i) of the Rajasthan Sales Tax Rules, 1955 were treated as unconstitutional for widening the charge beyond constitutional competence. Case-Laws VAT / Sales Tax Tue, 17 Nov 1992 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=103520