M/S. MAHIM PATRAM PVT.LTD. vs UNION OF INDIA .

The Supreme Court addressed the applicability of the Central Sales Tax Act, 1956, to works contracts, clarifying that while the Act does not define works contracts, the absence of such a definition does not prevent the imposition of sales tax by State Legislatures under Article 286(3)(b) of the Constitution. The Court held that the legislative power of the State to impose such taxes is subject to conditions laid down by Parliament, but the lack of a specific law does not preclude the exercise of this power. The outcome affirmed the need for legislative clarity on the taxation of works contracts.