V P R CONSTRUCTIONS SULLURPET NELLORE DIST Vs. SUPERINTENDING ENGINEER ROADS AND BUILDINGS DEPARTMENT RANDB CIRCLE CHITTOOR

JUDGEMENT

(1.) These writ petitions are filed by the Petitioners praying for the issue of a writ of mandamus declaring the inclusion of "works contractor" in the definition of 'dealer' in Section 2(1)(e) of the Andhra Pradesh General Sales Tax Act,. 1957 (hereinafter referred to as 'the Act') and consequent application of the amended provisions of Sections 5-F, 5-G and 5-H of the said Act to the petitioners, who are works contractors as illegal, arbitrary, unwarranted, null and void and consequently direct the respondents to refund the petitioners the sale tax amounts already collected from them in respect of the contract works done by them.

(2.) The learned Counsel for the petitioners contended that the inclusion of 'works contractor' within the definition of 'dealer' is illegal. According to the learned Counsel, the contractors purchase materials required for carrying out the works entrusted to them by various Government Departments and use the material purchased while executing them. In the process of execution of those works, the works contractors do not make any sale so as to make them liable for payment of sales tax. Therefore, the inclusion of the 'works contractor' in the definition of 'dealer' in Section 2(1)(e) of the Act and consequent application of the amended provisions for deduction of tax is illegal and arbitrary.

(3.) The learned Counsel in support of his contentions relied upon the following judgments:- Rainbow Colour Lab and another v. State of MP. and others, 30 APSTJ 96; Hindustan Aeronautics Ltd. v. State of Karnataka, 55 STC 314 and Steel Authority of India Ltd. v. State of Orissa, 30 APSTJ 202.