LARSEN & TOUBRO LIMITED versus ADDITIONAL DEPUTY COMMISSIONER OF COMMERCIAL TAXES & ANR.

LARSEN & TOUBRO LIMITED versus ADDITIONAL DEPUTY COMMISSIONER OF COMMERCIAL TAXES & ANR.

The value of work entrusted to sub-contractors or payments made to them shall not be taken into consideration while computing total turnover for the purposes of Section 6-B of the Karnataka Sales Tax Act, 1957; there must be a transfer of property in goods for inclusion in total turnover.

Parties
Appellant/assessee: Larsen & Toubro Limited; Respondent/revenue: Additional Deputy Commissioner of Commercial Taxes & Anr.
Jurisdiction
India
Judgment Date
05 September 2016
Procedural Posture
Civil Appeal / Appeal From High Court Judgment Dated 03.02.2006 (strp No. 44 of 2004, High Court of Karnataka)
Outcome
Appeals by assessee allowed; appeal by Revenue dismissed.
Legal Topics
Sales Tax, Works Contract, Double Taxation, Computation of Total Turnover, Turnover Tax
Taxation Commercial Law Sales Tax Works Contract Double Taxation Computation of Total Turnover Turnover Tax

Case Brief

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Parties

Larsen & Toubro Limited

Appellant/assessee

Additional Deputy Commissioner of Commercial Taxes & Anr.

Respondent/revenue

Procedural Posture

Civil Appeal / Appeal From High Court Judgment Dated 03.02.2006 (strp No. 44 of 2004, High Court of Karnataka)

Legal Issues

  1. 1 Whether payments made to sub-contractors, who have paid sales tax as registered dealers, are to be included while calculating total turnover for purposes of turnover tax under Section 6-B of the Karnataka Sales Tax Act, 1957.

Ratio Decidendi

The value of work entrusted to sub-contractors or payments made to them shall not be taken into consideration while computing total turnover for the purposes of Section 6-B of the Karnataka Sales Tax Act, 1957; there must be a transfer of property in goods for inclusion in total turnover.

Court Disposition

Appeals by assessee allowed; appeal by Revenue dismissed.

Orders

  • Value of work entrusted to sub-contractors or payments made to them excluded from total turnover for purposes of s.6B Karnataka Sales Tax Act, 1957.
  • No order as to costs.