Sales tax applies on Divisible Contract if predominant intention was Sale of Equipment

M/s. Bharat Heavy Electricals Ltd. Vs. State of Maharashtra (Bombay High Court) It is evident that in the facts of the present case the contract was clearly one for supply and erection of equipment, supply of equipment being dominant purpose. No doubt the State of Maharashtra had enacted the Maharashtra Sales Tax on “Transfer” of property of goods involved in works contract Act only in 1982 but the contention that during the period under consideration 1979­- 80 and 1980­- 81 the State had no power to levy the tax on Works contract will not be of any assistance to the applicant. In our vi...