STATE OF A.P. vs M/S.KONE ELEVATORS (I)LTD.

The Supreme Court ruled that the transactions conducted by M/s Kone Elevators (India) Ltd. constituted 'works-contract' rather than mere sales under the Andhra Pradesh General Sales Tax Act, 1957, specifically referencing Section 5G and Section 5F. The Court upheld the Sales Tax Appellate Tribunal's decision to allow deductions for labor charges, emphasizing that the nature of the work involved manufacturing, supply, installation, and commissioning of elevators. Consequently, the appeal by the department was dismissed, affirming the Tribunal's ruling.