JAIPRAKASH INDUSTRIES LTD Vs. STATE OF U P

JUDGEMENT

(1.) This writ petition has been filed for a writ of certiorari to quash clause (3) of the Composition Scheme dated August 10, 2000 Under Section 7-D of the U.P. Trade Tax Act, 1948 annexure 5 to the writ petition and for a writ of certiorari to quash the circular dated August 10, 2000 issued by the Commissioner, Trade Tax, U.P., annexure 6 to the writ petition.

(2.) Heard learned counsel for the parties.

(3.) The petitioner is a company registered under the Indian Companies Act, 1956. It had been awarded three civil works contracts as stated in paragraphs 4, 5 and 6 to the writ petition. Photocopies of the works orders are annexures 2, 3 and 4 to the writ petition. A perusal of the same shows that it involved civil work including earth work, development of the area, construction of road, walkways, landscaping, etc. Under Section 2(h) of the U.P. Trade Tax Act, 1948 the transfer of property involved in the execution of a works contract is treated as sale. Under Section 3-F of the Act tax is imposed on transfer of property in goods involved in execution of works contract. Section 3-F has been quoted in paragraph 8 of the writ petition.