TMI Blog1991 (12) TMI 253X X X X Extracts X X X X X X X X Extracts X X X X ..... er within the meaning of section 14 of the Bihar Finance Act, 1981 (annexure 1) as also under section 7(2) of the Central Sales Tax Act, 1956 (annexure 2). 3.. The petitioner has contended that it had been making purchase of goods in the course of inter-State trade or commerce for use thereof in the execution of works contract on the basis of form C furnished to the concerned dealers. 4.. The petitioner filed an application on August 16, 1980 for issuance of one book of form C but the respondent No. 4, by an order dated August 16, 1984 (annexure 4) refused to issue the same mentioning "in case of contractors/builders form C cannot be issued to be used at present". 5.. The learned counsel appearing on behalf of the petitioner has raise ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8.. Section 2(ww) of the said Act defines "works contract" to mean any agreement for carrying out for cash or deferred payment or other valuable consideration the construction, fitting out, improvement or repair of any building, road, bridge or other immovable or movable property. 9.. From a conjoint reading of the aforementioned provisions, there cannot be any doubt that a person who carries on the business of "works contract" may transfer property in goods whether as goods or in some other form and as he sells "goods" involved in the works contract and thus becomes a "dealer" within the meaning of the provisions of the said Act. 10.. As indicated hereinbefore, the petitioner is a registered dealer both under the provisions of the said ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4.. Clause (29-A) of article 366 of the Constitution of India thus creates a legal fiction. In East End West Dwellings Co. Ltd. v. Finsbury Borough Council, reported in [1952] AC 109, Lord Asquith stated the law thus: "If you are bidden to treat an imaginary state of affairs as real, you must surely, unless prohibited from doing so, also imagine as real the consequences and incidents which, if the putative state of affairs had in fact existed, must inevitably have flowed from or accompanied it. The statute says that you must imagine a certain state of affairs; it does not say that having done so, you must cause or permit your imagination to boggle when it comes to the inevitable corollaries of that state of affairs." The aforementione ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he land on which the building is constructed, when the goods or materials used are incorporated in the building. The contractor becomes liable to pay the sales tax ordinarily when the goods or materials are so used in the construction of the building and it is not necessary to wait till the final bill is prepared for the entire work." 17.. It is, therefore, clear that if the transfer of goods involved in a works contract by reason of a legal fiction is deemed to be a "sale" and the seller is entitled to all the benefits granted to him under the provisions of the said Act and the Central Sales Tax Act. 18.. In a recent Full Bench decision in C.W.J.C. No. 802 of 1990(R)* and other analogous cases, one of us (S.B. Sinha, J.) has held as fo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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