M/S K. RAHEJA DEVELOPMENT CORPORATION vs STATE OF KARNATAKA

The Supreme Court addressed the issue of whether the Appellants, engaged in real estate development, qualify as 'dealers' under the Karnataka Sales Tax Act, 1957. The Court upheld the Karnataka High Court's decision, affirming that the Appellants are liable to pay turnover tax as there was a transfer of property in goods pursuant to a works contract. The Court clarified that the principles established in the case of M/s. Mittal Investment Corporation are applicable, and no further remittance to the High Court was necessary.