State Of A.P. & Ors vs Larsen & Tourbo Ltd. & Ors

The Supreme Court held that under Section 4(7)(a) of the Andhra Pradesh Value Added Tax Act, 2005, the turnover of sub-contractors is not to be included in the turnover of the main contractor, as the sub-contractors are registered dealers and the transfer of property in goods constitutes a direct sale to the contractee. The Court ruled that the assessment order imposing additional tax on the main contractor for not disclosing sub-contractors' turnover was incorrect, thereby allowing the writ petition and quashing the assessment order dated 31.5.06.