TMI Blog1989 (9) TMI 355X X X X Extracts X X X X X X X X Extracts X X X X ..... 1984 and rules 13-A and 26-A of the Bihar Sales Tax Rules, 1983 are ultra vires the Constitution of India, illegal, without jurisdiction, void and of no effect and unenforceable; (ii) A writ of or in the nature of certiorari be issued for quashing the notices, etc., as contained in annexure-7 series be not quashed; (sic) (iii) Any other appropriate writ(s) be issued, order(s) be passed and direction(s) be made as to your Lordships may appear fit and proper." 3.. By an order dated 24th May, 1988 this application was directed to be put up after disposal of C.W.J.C. No. 152 of 1988 (R). 4.. On 23rd August, 1989, the petitioners filed an application for amendment of the writ application praying, inter alia, that the following relief be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent plant at Southern Pumping Station, Jamshedpur, which job consists of mechanical, electrical, structural and earth works, etc. 9.. The petitioners have further asserted that for execution of the aforementioned works contract, petitioner No. 1 has engaged a subcontractor, namely, M/s. Specon India Ltd., and the said sub-contractor executed that part of the contract which was assigned to him by the petitioners in accordance with the terms of the contract itself. 10.. The further case of the petitioners is that the aforementioned sub-contractor is paying sales tax in respect of the goods supplied by him for execution of the works contract in terms of the provisions of the Bihar Finance Act and the Bihar Sales Tax Rules. 11.. It is fur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e conclusion that sales tax is to be paid only in respect of such goods (in any form) which are supplied by the contractor to the principal in execution of the works contract. 14.. Thus, it is clear that a sub-contract if granted validly and in terms of the provisions of contract entered into by and between the principal and the main contractor is a part of the main contract itself. 15.. It is also clear that any goods supplied by the sub-contractor in execution of his portion of the job, would be relatable to supply of goods in execution of the works contract itself between the principal and the main contractor. So far as the principal is concerned, unless there exists a contrary intention expressed in the agreement itself, goods sup ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... portion of the contract, in our opinion, no further sales tax would be leviable thereupon. 20.. In this view of the matter, the writ petition is allowed in part and the order of assessment and the notice of penalty issued against the petitioner as contained in annexures-5 and 6 of the writ petition are quashed and the respondent No. 4 is hereby directed to proceed with the assessment proceeding and/or penalty proceeding in accordance with law, keeping in view, the decision of the Supreme Court in Builders Association's case [1989] 73 STC 370; 1989 BLT 151, the decision in Jamshedpur Contractors' Association's case [1989] 75 STC 132 (Pat) and the observations made hereinbefore. In the facts and circumstances of the case, there will be no ..... X X X X Extracts X X X X X X X X Extracts X X X X
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