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PETITIONER: THE STATE OF MADRAS
Vs.
RESPONDENT: GANNON DUNKERLEY & CO.,(MADRAS) LTD.
DATE OF JUDGMENT: 01/04/1958
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 560 1959 SCR 379
ACT: Sales Tax-Building contracts-Tax on supply of materials in construction works--State’s Power of taxation-" Sale of goods ", Meaning of-Legislative practice-Nature of agreement in building, contracts Sale of Goods Act, 1930 (III of 1930), S. 4 Madras General Sales Tax Act, 1939 (Mad. IX of 1939), as amended by Madras Act XXV Of 1947, SS. 2(c)(h)(i), Explanation 1(i), r. 4(3)-Government of India Act, 1935 (26 Geo. 5, Ch. 2), S. 107, Sch. VII, List II, Entry 48.
HEADNOTE: The respondent company, doing business, inter alia, in the construction of buildings, roads and other works was assessed to sales tax by the sales tax authorities who sought to include, the value of the materials used in the execution of building contracts within the taxable turnover of the respondent. The validity of the assessment was challenged by the respondent who contended that the power of the Madras Legislature to impose a tax on sales under Entry 48 in List II in Sch. VII of the Government of India Act, 1935, did not extend to imposing a...