M/S. Tecnimont Pvt. Ltd. (Formerly ... vs State Of Punjab .

The Supreme Court addressed the interpretation of the Punjab Value Added Tax Act, 2005, specifically Sections 3 and 4, regarding the liability of contractors for tax on works contracts. The Court established that the tax liability arises at the point of transfer of property in goods involved in the execution of the contract. The appeals were allowed, setting aside the orders of the High Court that had imposed tax liability on the appellant without proper consideration of the contractual terms.