Law: Sales Tax Act, 1990

Section: 3,2(12),(14),(33),(34),(41),3(3),2(35),2 (41)

(a) Sales Tax Act (VII of 1990)--- ----Ss. 2(12), (14), (33), (34) & (41)---Term `goods'---Connotation---To become `goods' an article must be something which ordinarily comes to the market, to be bought and sold and is known in the market. (b) Sales Tax Act (VII of 1990)---Ss. 2 (12), (16), (17), (35), (41) & 3(3)---Expressions `taxable activity' and `taxable supply'---Scope---Goods, leviable to sales tax---Girders used in construction of overhead bridge---Punjab Highway Authority designed the bridge and the girders to be used in its construction were of a specific size which were not available in open market---Contractor purchased raw material from open market, which was already liable to sale tax and pre-cast the girders at site under the direct supervision of engineer of the Authority---Sales tax authorities levied sales tax on the construction of girders used by the contractor in the construction of the overhead bridge---Validity---Sales tax could be charged, levied and paid only when a taxable supply was made in the course or furtherance of a taxable activity, which involved in the whole or in part the supply of goods to any other person---Word `supply', as defined under S.2(33) of Sales Tax Act, 1990, included, sale, transfer, lease or other disposition of the goods in course of furtherance of business carried for consideration---Contractor could not be termed as manufacturer, producer and whole-seller as he did not indulge in the manufacturing of any kind of goods which could be bought or sold in open market---Contractor had not created any independent market product, which could ordinarily be brought to market and sold in the 'ordinary course of business---Required girders, pre-cast at site and used in the construction of overhead bridge, were not goods saleable in open market, as the same were of a particular design, size and specification and could not be used in any other bridge or building or construction work---Use of such girders by the contractor itself amounted to taxable supply to itself---Construction of bridge which was handed over to the Highway Authority could not be treated as `goods', therefore, supply of girders was not made in…

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