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1955 (10) TMI 24 - HC - VAT and Sales TaxWhether in a works contract which has as its object the construction of a building as such, the contractor could be said to have sold any goods or materials used in the building in order to bring them within the power of taxation conferred on a State by Entry 54 of List II of Schedule VII of the Constitution. Whether a building contractor is doing a business or occasionally transacting the business of buying, selling or supplying of goods to the person with whom he has contracted to build a building or structure or repair of building or structure? Held that:- Petition allowed. Where a works contract is undertaken the materials which make up the finished product or building, are generally purchased from an outside agency, unless the builder or manufacturer is himself the producer of the material so used, and are not sold to the person for whom the building is being built or article is made for profit. In this view of the matter also the assessee cannot be said to be a dealer within the meaning of the Hyderabad General Sales Tax Act as to be taxed on the materials used in the works contract - direct the issue of a writ of mandamus prohibiting respondents 1 and 3 from collecting sales tax.
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