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PETITIONER: FIRM OF M/S. PEARE LAL HARI SINGH
Vs.
RESPONDENT: THE STATE OF PUNJAB & ANOTHER
DATE OF JUDGMENT: 07/04/1958
BENCH: AIYYAR, T.L. VENKATARAMA BENCH: AIYYAR, T.L. VENKATARAMA BOSE, VIVIAN DAS, SUDHI RANJAN (CJ) DAS, S.K. SARKAR, A.K.
CITATION: 1958 AIR 664 1959 SCR 438
ACT: Sales Tax-Building contracts-State’s Power of taxation on supply of materials in construction works-Whether building contract comprises a distinct agreement for sale of materials-East Punjab General Sales Tax Act, 1948 (East Punjab XLVI of 1948), SS. 2(d)(j), 4(1)-Government of India Act, 1935 (26 Geo. 5 Ch. 2), Sch. VII, List II, Entry 48.
HEADNOTE: The petitioners who were building contractors in the State of Punjab were assessed to tax by the sales tax authorities on the supply of materials in construction works treating it as a sale, acting under the provisions of the East Punjab General Sales Tax Act, 1948. The petitioners challenged the legality of the assessment proceedings on the grounds, inter alia, that the legislature of the Province of Punjab had, under Entry 48 in List II of Sch. I’ll to the Government of India Act, 1935, no power to impose tax on the supply of materials in construction works as there was no sale in fact or in law of those materials, and that the provisions of the Act which sought to do it were ultra vires. The assessing authorities conte...