A three-judge bench of the Supreme Court in State of AP v. Kone Elevators (2005) 3 SCC 389 <\/em><\/strong>had taken the view that a\u00a0 contract for\u00a0 manufacture, supply\u00a0 and installation of lifts is a \u201csale\u201d and the entire value of the consideration can therefore be taxed under the sales tax law.\u00a0 The decisions of the Supreme Court\u00a0\u00a0\u00a0\u00a0 in State of Rajasthan v. Man Industrial Corpn Ltd. (1969) 1 SCC 567<\/em><\/strong>, State of Rajasthan v. Nenu Ram (1970) 26 STC 268 <\/em><\/strong>and Vanguard Rolling Shutters and Steel Works v. CST (1977) 2 SCC 250 <\/em><\/strong>were however not noticed in the Kone Elevators 2005 judgment. Therefore, a reference was made to a larger bench of\u00a0\u00a0\u00a0 five Hon\u2019ble Judges to review the issue afresh.<\/p>\n \u00a0<\/p>\n Whether a contract for manufacture, supply and installation of lifts is a contract\u00a0\u00a0\u00a0 of sale or a works contract?<\/p>\n \u00a0<\/p>\n The installation obligation in a contract for manufacture, supply and installation\u00a0\u00a0 of lift is not merely incidental, but is a profound partof the entire contract. Various components are assembled together and installed at site as a permanent fixture to the building. The goods, skill and labour elements are intimately connected with one another and the contract is not divisible. There is no chattel quachattel transfer. State of AP v. Kone Elevators (2005) 3 SCC 389 <\/em><\/strong>overruled.<\/p>\n \u00a0<\/p>\n A contract for manufacture, supply and installation of lifts is a works contract. (WP(C) Nos. 232, 298, 487 and 528 of 2005 dt. 6-5-2014)<\/p>\n \u00a0<\/p>\n Editorial <\/em><\/strong>: The distinction between \u201csale\u201d and \u201cworks contract\u201d has diminished under the new GST regime, from the levy point of view. However, this decision\u00a0 can still be used to understand what is a works contract for purposes of classification for rate of tax under GST law. Under the said Act the term \u201c works contract\u201d have been defined under S. 2(119) and is pertaining to only immovable properties. Such supply has been treated as supply of services.<\/p>\n \u201cJust as a man not cherish living in a body other than his own, so do nations notlike to live<\/em><\/p>\n under other nations, however noble and great the latter may be.\u201d<\/em><\/p>\n – Mahatma Gandhi<\/p>\n","protected":false},"excerpt":{"rendered":" Madras General Sales tax Act , 1939Issue<\/h3>\n
View<\/h3>\n
Held<\/h3>\n
\nS.2(i): Works contract -Lift installation- Construction- Building products – Manufacture, supply and installation of lifts- A contract for manufacture, supply and installation of lifts is a works contract [ S. 4, 5 ,6 ,7 , Constitution of India ,Art, 366(29A)(b) ,Finance Act , 1994 , S, 65(29) , S. 2 , Maharashtra Lifts Act , 1939, S .3(e), Sale of Goods Act 1930 , S.21 ]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[5],"tags":[],"class_list":["post-13132","post","type-post","status-publish","format-standard","hentry","category-gst-law"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-3pO","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/13132","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=13132"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/13132\/revisions"}],"predecessor-version":[{"id":13133,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/13132\/revisions\/13133"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=13132"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=13132"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=13132"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}