STATE OF KERALA vs BUILDER ASSON. OF INDIA

The Supreme Court interpreted Section 5 of the Kerala General Sales Tax Act, specifically addressing the taxation of works contracts. It clarified that contractors have the option to pay tax at a compounded rate under sub-section (7) or (7A) based on the nature of the goods transferred. The Court held that the provisions for tax deduction from payments made by the awarder are mandatory and must be adhered to, thereby affirming the legislative intent behind the taxation framework.