TaxTMI 
TaxTMI 
2008 (7) TMI 938
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....ract. The dispute in the present revision relates to the assessment year 1991-92 with respect to inter-State sale. Orders for erecting and installing the "sprinkler irrigation system" were given to the applicant by the party situate outside the State of U.P. Under the contract, digging of earth, filing of sand, laying of pipes, connecting of pipes with clamps, fixation of sprinklers in the pipes, making the land plain in original shape and connecting with source of water and commissioning the system were required to be carried on by the dealer-applicant. It disclosed taxable turnover at Rs. 97,36,881.94. The assessing authority although accepted the account books of the applicant but levied tax on the amount of Rs. 7,00,000 on the material ....
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....the course of argument, Sri Bharatji Agrawal, learned senior counsel for the dealer-opposite party, submits only one point in support of the revision. The submission is that under unamended article 366 as also unamended definition of "sale" in section 2(h) mentioned in the Central Sales Tax Act prior to May 13, 2002 works contract is not included in the definition of "sale". He submits that the assessing authority was not justified in bringing the contract in two parts and treating it as sale of the goods, i.e., sprinklers and installation charges, etc., separately. The learned standing counsel, on the other hand, supports the impugned order. Considered the respective submissions of the learned counsel for the parties. In the present case,....
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.... held that while enacting a law imposing a tax on sale or purchase of goods under entry 54 of the State List read with sub-clause (b) of clause (29A) of article 366 of the Constitution, it is not permissible for the State Legislature to make a law imposing tax on such a deemed sale which constitutes a sale in the course of inter-State trade or commerce under section 3 of the Central Sales Tax Act or an outside sale under section 4 of the Central Sales Tax Act or sale in the course of import or export under section 5 of the Central Sales Tax Act. So also it is not permissible for the State Legislature to impose a tax on goods declared to be of special importance in inter-State trade or commerce under section 14 of the Central Sales Tax Act e....