Skyline Construction v. Authority for Clarification & Advance Rulings 2025 INSC 1234 - Article 366(29A) Constitution - Works Contact
Constitution of India - Article 366(29A)(b) - Works Contract -The transfer of property in goods involved in the course of execution of a works contract deemed to be a sales of goods - While the State legislatures have the competence to impose sales tax on the works contracts after the 46th Constitutional Amendment, the principle that property in goods passes on the basis of principle of accretion in a works contract remains unchanged. In fact, the passing of property through accretion is a fundamental feature of a works contract. (Para 29)
Case Info
Case name: Authority for Clarification and Advance Rulings, Gandhinagar Karnataka & Anr. v. M/s Skyline Construction and Housing Pvt. Ltd.
Neutral citation: 2025 INSC 1234.
Coram: J.B. Pardiwala, J.; K.V. Viswanathan, J.
Judgment date: 9 October 2025.
Caselaws and Citations
- State of Andhra Pradesh v. Larsen & Toubro Ltd. & Others, 2008 (17) VST 1.
- State of Kerala v. Builders Association of India, (1997) 2 SCC 183.
- Builders’ Association of India v. Union of India, (1989) 2 SCC 645; (1989) 73 STC 370.
- State of Madras v. Gannon Dunkerley & Co. (Madras) Ltd., AIR 1958 SC 560.
Statutes / Laws Referred
- Karnataka Value Added Tax Act, 2003: Sections 2(31), 2(35), 2(36), 2(37), 3, 4, 15; and KVAT Rules, 2005 Rule 3(2).
- Notification dated 23 March 2005 under Section 15(1) KVAT.
- Constitution of India: Article 366(29A)(b); Seventh Schedule, List II, Entry 54.
- Central Sales Tax Act, 1956: Sections 14 and 15.