STATE OF A.P. vs LARSEN & TOURBO LTD. .

The Supreme Court ruled that under Section 4(7)(a) of the Andhra Pradesh Value Added Tax Act, 2005, the turnover of sub-contractors is not required to be included in the turnover of the main contractor. The Court established that the sub-contractors, being registered dealers, engaged in direct sales to the contractee, thus negating the need for the main contractor to report their turnover. The assessment order imposing additional tax on the main contractor was quashed, affirming the legal interpretation of deemed sales under the Act.