2024 (12) TMI 1130

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....pers (PSC Sleepers) which are supplied to the Indian Railways as well as other dealers. It is admitted that these sleepers are manufactured according to the specifications and designs provided by Indian Railways. The petitioner, treating the supply of these sleepers as sales, had paid tax @ 4% on the turnover, for the assessment period 01.03.2007 to 31.08.2008. 2. The Assessing Officer, rejected the said contention of the petitioner and held that the supply of PSC sleepers would amount to execution of a works contract which is to be taxed @12.5% and had passed an order of assessment, dated 28.05.2009, assessing the turnover of the petitioner @ 4% for some goods and 12.5% for the turnover relating to sleepers. 3. Aggrieved by the said ....

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....sidering the taxability of a development agreement between land owners who had offered the land for construction of a multi-storied apartments and Commercial Complexes and the developer who took up construction, under this agreement. The Hon'ble Supreme Court after considering the definition of 'works contract', contained in the Karnataka Sales Tax Act, which is in pari materia with the definition contained in APGST Act, had held that an agreement for construction of apartments, for a valuable consideration or in installments would amount to a works contract. The ratio of the Judgment of the Hon'ble Supreme Court can be extracted as follows: "We have heard the parties, perused the various documents and considered the cases cited at....

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....ulation of Promotion of Construction, Sales, Management and Transfer) Act, 1972 will have no relevance". 8. The learned Government Pleader, in support of the said order of the Assessing Authority, would contend that PSC Sleepers are not goods known to the market and are specialized goods made according to the specifications given by only one customer i.e., Indian Railways. He would submit that once sleepers are not goods known to the market, the question of supply of such goods being treated as 'sales' would not arise. 9. The Judgment of the Hon'ble Supreme Court, in K. Raheja Development Corporation vs. State of Karnataka, relates to the question of whether a construction agreement for construction of apartments would amount to a wor....