THE INDIAN HUME PIPE CO. LTD. vs THE STATE OF RAJASTHAN AND ORS. FINANCE DEPARTMENT SECRETARY TO GOVERNMENT OF RAJASTHAN

The Supreme Court addressed the issue of whether the works contract awarded to M/s. India Hume Pipe Co. Ltd. is divisible under the Rajasthan Sales Tax Act, 1954, specifically Section 7AA. The Court upheld the decisions of the lower authorities, affirming that the contract was divisible and that 75% of its value constituted a sale of goods, thus justifying the imposition of tax and penalty. The Court concluded that the assessee was not entitled to exemption under the relevant provisions for the assessment years in question.