CONSTRUCTION AND CONSTRUCTION Vs. UNION OF INDIA

JUDGEMENT

(1.) This writ application has been filed on behalf of the petitioner questioning the validity of the Constitution (Forty-sixth Amendment) Act, 1982 (hereinafter referred to as "the 46th Amendment") by which Clause (29A) was inserted in Article 466 of the Constitution. The petitioner also sought a declaration that Rule 26A of the Bihar Sales Tax Rules, 1983 (hereinafter referred to as "the Rules") was ultra vires and as such no deduction under Section 25A of the Bihar Finance Act, 1981 (hereinafter referred to as "the Act"), can be made from the amount payable for execution of a works contract by the persons or authorities making such payment in respect of the contract in question.

(2.) The relevant part of Clause (29A) aforesaid which was introduced by the Forty-sixth Amendment in Article 466 of the Constitution is as follows : " 'tax on the sale or purchase of goods' includes-- (a) .............................. (b) a tax on the transfer of property in goods (whether as goods or in some other form) involved in the execution of a works contract ;" After the amendment aforesaid, different States amended the Acts relating to payment of tax on sale and purchase of goods to cover transfer of property in goods, whether as goods or in some other form involved in the execution of a works contract and for deduction of the amount of tax so payable by the person or authority making payment at the rate prescribed.

(3.) So far the Act with which we are concerned, Section 25A was introduced by the Bihar Finance Act, 1984. The relevant part of Section 25A is as follows :--