https://www.taxtmi.com/caselaws?id=157602 Section 26(2) of the Haryana General Sales Tax Act, 1973 was treated as a composition-style option for works contracts, not as a levy on the entire turnover of goods. The prescribed 2% rate operated only as a mode of computing tax payable in lieu of tax under the Act, with the contractor free to choose regular assessment instead. Under the regular mechanism, goods not taxable under sections 3, 4, 5, 14 and 15 of the Central Sales Tax Act, 1956, as well as labour and service components, remained excludable. On that basis, the provision and notification were held intra vires and the challenge to legislative competence failed. en-us Tue, 15 Dec 1992 00:00:00 +0530 Tue, 08 Oct 2013 15:30:16 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=157602 Section 26(2) of the Haryana General Sales Tax Act, 1973 was treated as a composition-style option for works contracts, not as a levy on the entire turnover of goods. The prescribed 2% rate operated only as a mode of computing tax payable in lieu of tax under the Act, with the contractor free to choose regular assessment instead. Under the regular mechanism, goods not taxable under sections 3, 4, 5, 14 and 15 of the Central Sales Tax Act, 1956, as well as labour and service components, remained excludable. On that basis, the provision and notification were held intra vires and the challenge to legislative competence failed. Case-Laws VAT and Sales Tax Tue, 15 Dec 1992 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=157602