Larsen & Toubro Limited vs Additional Dy.Commr.Of Commrl.Taxes ...

The Supreme Court addressed the applicability of Section 6-B of the Karnataka Sales Tax Act, 1957, concerning the taxation of payments made to sub-contractors by the assessee, Larsen & Toubro Ltd. The Court held that since the sub-contractors had already declared their turnover and paid taxes, the payments made by the assessee should not be included in its total turnover for tax purposes. The Court affirmed the High Court's decision, which had dismissed the assessee's revision petition, thereby upholding the view that there is only one taxable event under Article 366(29A)(b) of the Constitution of India.