M/S K. RAHEJA DEVELOPMENT CORPORATION vs STATE OF KARNATAKA — C.A. No. 2766/2000

Summary The Supreme Court dismissed K. Raheja Development Corporation's appeal against Karnataka's tax assessment. The Court held that the developer's construction agreements with flat purchasers constitute "works contracts" under the Karnataka Sales Tax Act, making the developer liable for turnover tax on the value of goods involved in construction. The Court interpreted "works contract" broadly to include any construction agreement for valuable consideration, regardless of whether the builder is the property owner, and found that the developer's right to forfeit and terminate agreements did not negate their works contract status. This case analysis is maintained by casestatus.in based on publicly available court records.