https://www.taxtmi.com/caselaws?id=347090 A works contract for manufacture, supply and laying of pipelines may be taxed on its goods component where the agreement is found on facts to be divisible into separate supply and labour/service elements. The Forty-sixth Constitutional Amendment permits bifurcation of a works contract, so the State may levy tax on the sale element of goods used in execution. On the facts discussed, the contract was treated as separable rather than an indivisible composite contract, because the substantial value related to manufactured pipes and allied materials supplied for the work. The cited Kone Elevator principle was said not to apply where divisibility was established on the record. en-us Mon, 28 Aug 2017 00:00:00 +0530 Tue, 05 Aug 2025 16:44:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=347090 A works contract for manufacture, supply and laying of pipelines may be taxed on its goods component where the agreement is found on facts to be divisible into separate supply and labour/service elements. The Forty-sixth Constitutional Amendment permits bifurcation of a works contract, so the State may levy tax on the sale element of goods used in execution. On the facts discussed, the contract was treated as separable rather than an indivisible composite contract, because the substantial value related to manufactured pipes and allied materials supplied for the work. The cited Kone Elevator principle was said not to apply where divisibility was established on the record. Case-Laws VAT / Sales Tax Mon, 28 Aug 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=347090