https://www.taxtmi.com/caselaws?id=160461 Section 57B of the Gujarat Sales Tax Act, which required tax deduction at source from payments to works-contract contractors, was held beyond State legislative competence because it operated on transactions outside the State's taxing field, including inter-State sales, outside sales and sales in the course of import. Although Article 366(29A) expanded the meaning of sale to cover goods involved in works contracts, that enlargement did not extend the State's taxing power beyond entry 54 of List II, subject to entry 92A of List I. The Court held that a machinery provision cannot be used to collect tax in advance on non-taxable transactions, and that the provision was colourable legislation. Section 57B was declared unconstitutional and void. en-us Wed, 18 Jul 2001 00:00:00 +0530 Wed, 18 Dec 2013 16:04:14 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=160461 Section 57B of the Gujarat Sales Tax Act, which required tax deduction at source from payments to works-contract contractors, was held beyond State legislative competence because it operated on transactions outside the State's taxing field, including inter-State sales, outside sales and sales in the course of import. Although Article 366(29A) expanded the meaning of sale to cover goods involved in works contracts, that enlargement did not extend the State's taxing power beyond entry 54 of List II, subject to entry 92A of List I. The Court held that a machinery provision cannot be used to collect tax in advance on non-taxable transactions, and that the provision was colourable legislation. Section 57B was declared unconstitutional and void. Case-Laws VAT and Sales Tax Wed, 18 Jul 2001 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=160461