M/S Larsen & Toubro Limited & Anr vs State Of Karnataka & Anr

The Supreme Court referred the matter concerning the legal interpretation of 'works contract' under the Karnataka Sales Tax Act, 1957 to a larger bench, questioning the correctness of the two-Judge Bench decision in Raheja Development Corporation. The Court highlighted the distinction between a development agreement and a works contract, emphasizing that the Department's reliance on the Raheja Development case was flawed as it conflated these two types of contracts. The Court directed that the matter be reconsidered by a larger bench to clarify the legal position on these contracts.