State Of Jharkhand And Others vs Voltas Ltd, East Singhbhum

The Supreme Court held that under Article 366(29A)(b) and following the precedent set in Gannon Dunkerley & Co. v. State of Rajasthan, a works contract is not a sale but can be taxed on the transfer of property in goods involved in its execution. The Court clarified that the value of goods for taxation must exclude charges related to labor and services, as only the sale of goods can be taxed under Entry 54 of List II of the Seventh Schedule. The appeal was allowed, affirming the lower court's decision regarding the applicable tax rate of 8%.