1990 (2) TMI 279

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..... ntroducing rule 13-A of the Bihar Sales Tax Rules, 1983 (hereinafter referred to as "the Rules"), an arbitrary procedure has been introduced for ascertainment of percentage of cost incurred as labour charges in different types of works contract. According to the petitioners, what amount a contractor has spent over labour charges has to be determined with reference to individual contract. 2.. A Be .....

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..... contractor spends on account of labour. 'Labour' cannot be said to be a goods even within the definition of 'goods' in the Act. From the gross turnover, the total amount spent by the contractor as labour charges in execution of the works contract shall have to be excluded. Rule 13-A cannot be sustained and must be held to be ultra vires." 3.. In view of the aforesaid judgment, now the assessment .....

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..... . It will also be open to the petitioners to urge before the assessing authority in respect of the exemption from the payment of tax on goods supplied free of cost. However, we are not expressing any opinion on the merit of that argument; that has to be considered first by the assessing authority. 6.. On behalf of the petitioners it was submitted that in view of rule 26-A authorising deduction "f .....

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