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M/s. Larsen & Toubro Ltd. Vs. State of Karnataka [26/09/13]

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[Civil Appeal No. 8672 of 2013 arising out of SLP (C) No.17741 of 2007]. [Civil Appeal Nos. 8673-8684 of 2013 arising out of SLP (C) Nos. 30581-30592 Of 2009]. Does the two-Judge Bench decision of this Court in Raheja Development[1] lay down the correct legal position? It is to consider this question that in Larsen and Toubro[2] a two-Judge Bench of this Court has referred the matter for consideration by the larger Bench. In the referral order dated 19.8.2008, the two-Judge Bench after noticing the relevant provisions of the Karnataka Sales Tax Act, 1957 and the distinction between a contract of sale and a works contract made the reference to the larger Bench by observing as follows : "We have prima facie some difficulty in accepting the proposition laid down in Para 20 quoted above. Firstly, in our view, prima facie, M/s Larsen & Toubro - petitioner herein, being a developer had undertaken the contract to develop the property of Dinesh Rank a. Secondly, the Show Cause Notice proceeds only on the basis that Tripartite Agreement is the works contract.

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