https://www.taxtmi.com/caselaws?id=127485 A works-contract sales tax mechanism that fixes turnover by deducting a predetermined labour percentage was treated as an artificial valuation of the sale element and could not be sustained where the levy must attach to the actual sale of goods; rule 4(3) and the supporting part of section 2(k) were therefore held ultra vires. The Court also accepted that a plea of ultra vires could be raised in writ proceedings under Article 226 even though it had not been urged before the sales tax authorities, and rejected the maintainability objection. The assessment orders based on the percentage-deduction formula were quashed on the constitutional challenge. en-us Thu, 15 Mar 1956 00:00:00 +0530 Mon, 11 Mar 2013 12:22:04 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=127485 A works-contract sales tax mechanism that fixes turnover by deducting a predetermined labour percentage was treated as an artificial valuation of the sale element and could not be sustained where the levy must attach to the actual sale of goods; rule 4(3) and the supporting part of section 2(k) were therefore held ultra vires. The Court also accepted that a plea of ultra vires could be raised in writ proceedings under Article 226 even though it had not been urged before the sales tax authorities, and rejected the maintainability objection. The assessment orders based on the percentage-deduction formula were quashed on the constitutional challenge. Case-Laws VAT and Sales Tax Thu, 15 Mar 1956 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=127485