BHARAT HEAVY ELECTRICALS LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) IN these writ applications under article 226 of the Constitution of India levy of tax under the Orissa Sales Tax Act (for short "the Act") amended in the year 1986, pursuant to the 46th Amendment of the Constitution is assailed by various petitioners from whom the assessing authorities claimed tax in respect of their business of works contract. As common questions of law are involved in all these writ applications, they were heard together and are disposed of by this common judgment.

(2.) SINCE we are considering the question whether the goods transferred to the contractee by each of the petitioners would be in course of execution of the works contract, we are not going into the merit of the case whether the goods have been actually transferred. In case we come to the conclusion that tax is exigible in respect of the goods involved in such of the works contract, we shall give opportunity to the petitioners to approach the statutory authorities who shall find facts to determine whether the transactions are exigible to tax.

(3.) THE levy of sales tax under the Act in respect of works contract by the amendment is assailed by the various petitioners on the following grounds :