State Of Andhra Pradesh vs M/S Kone Elevators (India) Ltd

The Supreme Court ruled that the transactions conducted by M/s Kone Elevators (India) Ltd. constituted 'works-contract' rather than mere contracts for sale under the Andhra Pradesh General Sales Tax Act, 1957. The Court emphasized that the nature of the work involved—manufacture, supply, installation, and commissioning of elevators—warranted deductions for labor charges under Section 5G read with Section 5F of the Act. The Court upheld the decision of the Sales Tax Appellate Tribunal, confirming that the disputed turnover should not be classified under Entry 82 of the Act, thus allowing the appeal in favor of the assessee.