https://www.taxtmi.com/caselaws?id=127685 The State's power under Entry 54 of List II extended only to taxing the sale or purchase of goods, so it could not tax the labour, supervision and profit components embedded in works-contract receipts. A works contract payment was not confined to the value of materials, and the definition of "sale price" in section 2(h)(ii) of the Madhya Pradesh Sales Tax Act, 1947, together with the deduction formula in rule 7 of the Vindhya Pradesh Sales Tax Rules, 1954, went beyond that constitutional power insofar as they applied to works contracts. The provisions were therefore invalid to that extent, and assessments resting on them were unsustainable in relation to contract business. en-us Sat, 24 Sep 1955 00:00:00 +0530 Thu, 14 Mar 2013 12:27:55 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=127685 The State's power under Entry 54 of List II extended only to taxing the sale or purchase of goods, so it could not tax the labour, supervision and profit components embedded in works-contract receipts. A works contract payment was not confined to the value of materials, and the definition of "sale price" in section 2(h)(ii) of the Madhya Pradesh Sales Tax Act, 1947, together with the deduction formula in rule 7 of the Vindhya Pradesh Sales Tax Rules, 1954, went beyond that constitutional power insofar as they applied to works contracts. The provisions were therefore invalid to that extent, and assessments resting on them were unsustainable in relation to contract business. Case-Laws VAT and Sales Tax Sat, 24 Sep 1955 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=127685