REPORTABLE

IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION

CIVIL APPEAL NO.   5239  OF  2008 (Arising out of S.L.P. (C) No.12482 of 2007)

State of Andhra Pradesh & Ors.     … Appellant (s)

versus

Larsen & Tourbo Ltd. & Ors.           .... Respondent (s)

J U D G M E N T

S.H. KAPADIA, J.

1. Leave granted.

2. Respondent  -  Larsen  &  Tourbo  Ltd.  (L&T)  is  engaged  in

executing  civil,  mechanical  and  other  building  works

throughout  India  including  Andhra  Pradesh.   During  the

relevant  period  it  entered  into  contracts  with  its  clients

(contractees)  whose names are given in the annexure to the

original  writ  petition  filed  in  the  High  Court  of  Andhra

Pradesh.  Under the Contract, L&T, with the consent of the

contractee, was permitted to assign parts of construction work

to the sub-contractors whose names are also given in the list

annexed to the original writ petition filed in the High Court.

Accordingly,  L&T placed orders on such sub-contractors for

agreed price, inclusive of applicable taxes.  The overall work

was done under the supervision of the consultants nominated

by  the  contractee.   The  sub-contractors  were  registered

dealers.   The  sub-contractors  purchased  goods  and  chattel

like  bricks,  cement  and steel  and,  where  necessary,  supply

and erect equipments such as lifts, hoist, etc.  The materials

were brought to site.  They remained the property of the sub-

contractors.  The site was occupied by sub-contractors.  The

materials were erected by the sub-contractors.

3. L&T was served with a notice dated 10.3.06 in which it

was alleged that the Company had failed to disclose the sub-

contractors’  turnover  of  Rs.111,53,05,835/-  in  the  returns

filed upto 31.1.06 for the period 1.4.05 to 31.1.06.  In reply,

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L&T  submitted  that  under  Section  4(7)(a)  of  the  Andhra

Pradesh Value  Added  Tax  Act,  2005 (“2005  Act”,  for  short)

there  was  no  provision  for  inclusion  of  sub-contractors’

turnover  in  the  turnover  filed  by  the  Company;  that,  the

scheme  of  the  said  Act  at  the  relevant  time  did  not

contemplate  for  the  declaration of  sub-contractors’  turnover

and, that, under the scheme of the said 2005 Act the sub-

contractor was a “dealer”.   

4. In this case the sub-contractors were registered dealers.

This point is not in dispute.  It was submitted by the Company

before the Assessing Authority that the transfer of property in

goods, as effected by the sub-contract, resulted in direct sale

to the contractee and consequently it did not involve multiple

sales either in favour of the main contractor or in favour of the

contractee.  By the said reply, the Company specifically stated

that it did not claim ‘input tax credit’ (ITC) on the tax invoice

of sub-contractors.  Accordingly, the Company objected to the

proposal  made  in  the  show  cause  notice  by  the  A.O.  to

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recompute the tax liability adopting a uniform rate of 12.5%

on the sub-contractors’ turnover.

5. The objections raised by the Company in its reply to the

show cause notice were rejected by the A.O. and the Company

was  consequently  served  with  an  assessment  order  dated.

31.5.06  raising  an  additional  tax  payment  of

Rs.9,75,89,261/-.   

6. Aggrieved by the assessment order dated 31.5.06, for the

aforestated period, the Company moved the Andhra Pradesh

High  Court  vide  Writ  Petition  No.12124  of  2006  and

challenged the following conclusion of the A.O. made in the

assessment order dated 31.5.06 which reads as under:

“Main contractor is having an order from the contractee to purchase and sell goods in the course of execution of works contract and for that matter, the main contractor should acquire that goods from the sub-contractor, by way of deemed sale as well as the main contractor, by way  of  deemed  sale  as  well  as  the  main  contractor should  transfer  the  value  of  the  property  by  way  of deemed  sales  to  the  contractee.   The  principles whatsoever apply to a sale in general squarely apply to a deemed  sale  also.   Therefore,  herein  cannot  question the legislative wisdom in framing the scheme of the Act giving a similar treatment to a deemed sale that is given to a sale in general.  It being so, there are two deemed

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sales one from main contractor to contractee  and the other from sub-contractor to the main contractor in the event  of  contractee  not having any privity of  contract with sub-contractor.”

(emphasis supplied by us)

7. The  question  which  needs  consideration  in  this  civil

appeal  is  :  whether  the  A.O.  was  right  in  his  conclusion,

namely, that in this case there were two deemed sales,  one

from main contractor to the contractee and the other from the

sub-contractors to the main contractor as there was no privity

of contract between the contractee and the sub-contractors.

8. To  answer  the  above  issue  we  need  to  quote  relevant

provisions of the 2005 Act which reads as under:

“CHAPTER – I

PRELIMINARY

SECTION 2 – Definitions.- In this Act, unless the context otherwise requires:--

(10) 'Dealer' means any person who carries on the business of buying,  selling,  supplying  or  distributing  goods  or  delivering goods  on  hire  purchase  or  on  any  system  of  payment  by instalments,  or  carries  on  or  executes  any  works  contract involving  supply  or  use  of  material  directly  or  otherwise, whether for cash or for deferred payment, or for commission, remuneration or other valuable consideration, and includes:

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(a) a company, a Hindu undivided family or any society including a co-operative society, club, firm or association which carries on such business;

(b) a society including a co-operative society, club, firm or association which buys goods from, or sells, supplies or distributes goods to its members;

(c) a casual trader, as herein before defined;

(d) any person, who may, in the course of business of running a restaurant or an eating house or a hotel by whatever name called, sells or supplies by way of or as part of any service or in any other manner whatsoever, of  goods,  being  food  or  any  other  article  for  human consumption or any drink whether or not intoxicating;

(e) any person, who may transfer the right to the use of any goods for any purpose whatsoever whether or not for a specified period in the course of business to any other person;

(f) a commission agent, a broker, a delcredere agent, an auctioneer or any other mercantile agent, by whatever name  called,  who  carries  on  the  business  of  buying, selling, supplying or distributing goods on behalf of any principal;

(16) 'Goods' means all kinds of movable property other than newspapers,  actionable  claims,  stocks, shares  and securities, and includes all  materials,  articles and commodities including the goods as  goods  or  in  some other  form,  involved  in  the execution of a works contract or those goods used or to be used in  the  construction,  fitting  out,  improvement  or  repair  of movable or immovable property and also includes all  growing crops, grass and things attached to or forming part of the land which  are  agreed  to  be  severed  before  sale  or  under  the contract of sale;

(19) 'Input tax' means the tax paid or payable under the Act by a VAT dealer to another VAT dealer on the purchase of goods in the course of business;

(28)  'Sale' with  all  its  grammatical  variations  and  cognate expressions  means  every  transfer  of  the  property  in  goods (whether as such goods or in any other form in pursuance of a

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contract or otherwise) by one person to another in the course of trade or business, for cash, or for deferred payment, or for any other valuable consideration or in the supply or distribution of goods by a society (including a co-operative society), club, firm or association to its members, but does not include a mortgage, hypothecation or pledge of, or a charge on goods.

Explanation VI:- Whenever any goods are supplied or used in the execution of a works contract, there shall be deemed to be a transfer of property in such goods, whether or not the value of the goods so supplied or used in the course of execution of such works contract is shown separately and whether or not the value  of  such  goods  or  material  can  be  separated  from the contract for the service and the work done.

(29) 'Sale Price' means :-

(a) the total amount set out in the tax invoice or bill of sale; or

(b) the total amount of consideration for the sale or purchase of goods as may be determined by the assessing authority, if the tax invoice or bill of sale does not set out correctly the amount for which the goods are sold; or

(c) if there is no tax invoice or bill  of sale, the total amount charged as the consideration for the sale or purchase of goods by  a  VAT  dealer  or  TOT  dealer  either  directly  or  through another, on his own account or on account of others, whether such  consideration  be  cash,  deferred  payment  or  any  other thing of value and shall include:

(i) the value of any goods as determined by the assessing authority:

(a)  to  have  been  used  or  supplied  by  the  dealer  in  the course of execution of the works contract; or

(b) to have been delivered by the dealer on hire purchase or any other system of payment by instalments; or

(c)  to  have  been  supplied  or  distributed  by  a  society including a Co-operative Society, Club, firm or association to

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its members, where the cost of such goods is not separately shown or indicated by the dealer and where the cost of such goods is separately shown or indicated by the dealer, the cost of such goods as shown or indicated;

(ii) any other sum charged by the dealer for anything done in  respect  of  goods  sold  at  the  time  of,  or  before,  the delivery of the goods;

(iii) any other sum charged by the dealer, whatever be the description, name or object thereof;

(35)  'Tax  invoice' means  a  sale  invoice  containing  such details  as may be prescribed and issued by a VAT dealer  to another VAT dealer;

(38) ‘Taxable turnover' means the aggregate of sale prices of all taxable goods;

(39) 'Total turnover' means the aggregate of sale prices of all goods, taxable and exempted, sold at all places of business of the  dealer  in  the  State,  including  transactions  falling  under Section 8 of the Act and under Section 6A of the Central Sales Tax Act, 1956 and shall  also include the gross consideration received or receivable towards execution of works contract;

(45) 'Works Contract' includes any agreement for carrying out for cash or for deferred payment or for any other valuable consideration,  the  building  construction,  manufacture, processing, fabrication, erection, installation, laying, fitting out, improvement,  modification,  repair  or  commissioning  of  any movable or immovable property;

CHAPTER - III

INCIDENCE, LEVY AND CALCULATION OF TAX

Section 4 - Charge to tax.-

(7) Notwithstanding anything contained in the Act;-

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(a)  Every dealer  executing works  contracts  shall  pay tax  on the value of goods at the time of incorporation of such goods in the works executed at the rates applicable to the goods under the Act:

Provided that where accounts are not maintained to determine the correct value of goods at  the time of incorporation, such dealer  shall  pay  tax  at  the  rate  of  12.5%  on  the  total consideration received or receivable subject to such deductions as may be prescribed;

(b) Any dealer executing any works contracts for the Government or local authority may opt to pay tax by way of composition at the rate  of  4%  on  the  total  value  of  the  contract  executed  for  the Government or local authority 1[***];

(c)   Any  dealer  executing  works  contracts  other  than  for Government  and  local  authority  may  opt  to  pay  tax  byway of composition  at  the  rate  of  4%  2[***]  of  the  total  consideration received  or  receivable  for  any specific  contract  subject  to  such conditions as may be prescribed;

(d) Any dealer engaged in construction and selling of residential apartments, houses, buildings or commercial complexes may opt to pay tax  by way of  composition  at  the rate of 4%of twenty five percent (25%) of the consideration received or receivable or the market  value  fixed  for  the  purpose  of  stamp duty whichever  is higher subject to such conditions as may be prescribed

3[e) Any dealer having opted for composition under  4[Clauses (b) or (c) or (d)],  purchases or receives any goods from outside the State or India or from any dealer other than a Value Added Tax dealer in  the State  and uses such goods in the execution of the works contracts,  such dealer shall  pay tax on such goods at  the rates applicable to them under the Act and the value of such goods shall be excluded for the purpose of computation of turnover on which tax by way of composition at the rate of four percent (4%) is payable.]

1  Omitted for the words “and in such cases, the tax at 4% shall be collected at source by such contractee  and  remitted  to  Government in  such manner  as  may be  prescribed”  by Act  5  of  2007,  dt. 22.01.2007, w.e.f. 01.09.2006 2  Omitted for the words “of fifty percent (50%) by Act NO.23 of 2005, w.e.f. 29.08.2005 3  Inserted by Act No.23 of 2005, w.e.f. 29.08.2005 4  Substituted for the words “clauses (b), (c) and (d)” by Act 5 of 2007, dt. 22.01.2007, w.e.f. 01.09.2006.

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5[f)]  Any  dealer  who  is  liable  to  be  registered  for  TOT  and executing any works contracts shall pay tax at the rate of 1% on total value of the goods at the time of incorporation of the goods used:

Provided that where accounts are not maintained to determine the correct value of the goods at the time of incorporation, such dealers shall pay tax at the rate of 1% on the total consideration received or  receivable  subject  to  such deductions as may be prescribed.

6[***]

7[(g)  notwithstanding  any  thing  contained  in  clauses  (a)  to  (f) above,  no  tax  shall  be  leviable  on  the  turnover  of  transfer  of property in goods whether as goods or in some other form involved in  the  execution  of  works  contract,  if  such  transfer  from  the contractor  to  the  contractee  constituted  a  sale  in  the  course  of interstate trade or commerce under section 3 or a sale outside the State under section 4, or a sale in the course of import or export under section 5 of the Central Sales Tax Act, 1956;

(h) no tax shall be payable under 8[clauses (a) or (b) or (c) of] this sub-section  on  the  turnover  relating  to  amounts  paid  to  a  sub- contractor  as  consideration  for  the  execution  of  works  contract whether wholly or partly subject to  the production of proof that such sub- contractor is registered as a VAT dealer under the Act and  the  turnover  of  such  amount  is  included  in  the  return prescribed filed by such sub-contractor.]

8[(i) no tax shall be payable under clause (d) of this sub-section on the turnover relating to the consideration received as a sub-contractor if the main contractor opted to pay tax by way of composition subject to the condition that the sub-contractor shall pay tax in respect of any goods purchased or received from outside the State of Andhra Pradesh or from

5  Renumbered by Act No.23 of 2005, w.e.f. 29.08.2005 6  The proviso was omitted by Act 5 of 2007, dt.22.01.2007, w.e.f. 01.09.2006.   

The earlier  proviso: “Provided further  that  no tax shall  be payable  under  this  sub-section  on the turnover relating to the consideration received as a sub-contractor if the main contractor opted to pay tax by way of  composition  subject  to  the  condition  that  the  sub-contractor  shall  pay tax in  respect  of  any goods purchased or received from outside the State of India or from any person other than a Value Added Tax dealer in the State on the value of such goods at the rates applicable to them under the Act”. 7  Added by Act 5 of 2007, dt.22.01.2007, w.e.f. 01.09.2006 8  Added by Act No.39 of 2007, dt. 18.12.2007, w.e.f. 01.09.2006 8

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any person other  than a Value Added Tax dealer  in  the  State  on the Value of such goods at the rates applicable to them under the Act.]

9. We also quote relevant provisions of the Andhra Pradesh

Value Added Tax Rules, 2005 (as it stood at the relevant time)

which read as under:

“RULE 17.  Treatment of works contracts. –  

(1) Treatment of VAT dealer executing works contract : -   

(a) In the case of contracts not covered by sub-rules (2), (3) and (4) of this rule, the VAT dealer shall pay tax on the value of the goods at  the  time  the  goods  are  incorporated  in  the  work  at  the  rates applicable to the goods;

(c) If such VAT dealer awards any part of the contract to a sub- contractor,  such  sub-contractor  shall  issue  a  tax  invoice  to  the contractor for the value of the goods at the time of incorporation in such sub-contract. The tax charged in the tax invoice issued by the sub-contractor shall be accounted by him in his returns.

(e)  Subject  to  clause  (d)  the  following amounts  are  allowed as deductions from the total consideration received or receivable for arriving the value of the goods at the time of incorporation, -

(i) Labour charges for execution of the works;

(ii) Charges for planning, designing and architect’s fees;

(iii) Charges  for  obtaining  on  hire  or  otherwise machinery and tools used for the execution of the works contract;

(iv) Cost of consumables such as water, electricity, fuel, etc., used in the execution of the works contract, the property in which is not transferred in the course of execution of a works contract;

(v) Cost of establishment of the contractor to the extent it is relatable to supply of labour and services;

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(vi) Other similar expenses relatable to supply of labour and services;

(vii) Profit  earned by the  contractor  to  the  extent  it  is relatable to supply of labour and services;”

10. We also quote Article 366(29A)(b) of the Constitution of

India which reads as under:

“366.  Definitions.  In  this  Constitution,  unless  the context  otherwise  requires,  the  following  expressions have  the  meanings  hereby  respectively  assigned  to them, that is to say –  

(29A) “tax on the sale or purchase of goods” includes –  

(b) a tax on the transfer of property in goods (whether as goods or in some other form) involved in the execution of a works contract;

and such transfer, delivery or supply of any goods shall be deemed to be a sale of those goods by the person making the transfer, delivery or supply and a purchase of those goods by the  person to whom such transfer, delivery or supply is made;”

11. The only question which we are required to decide is :

whether  the  turnover  of  Rs.111,53,05,835/-  of  the  sub-

contractors is liable to be added to the turnover of L&T?  On

the turnover of L&T, it is liable to pay the tax and that is not

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in  dispute.   What  is  in  dispute  is  the  addition  of  sub-

contractors’ turnover to the turnover of L&T.

12. A contract of work, i.e., “works contract” involves transfer

of property and also element of service or work rendered.  That

is why it is called composite contract.  Works contracts can be

of two types only:

(a) Works contracts for constructions; and

(b) Works contract in relation to any movable property like repairs to vehicles, printing contracts etc.

13. In the first case of The State of Madras v. M/s. Gannon

Dunkerley & Co.,  (Madras)  Ltd.-  [(1958) 9 STC 353]  this

Court  held  that  if  the  words  “sale  of  goods”  have  to  be

incorporated in their legal sense, that sense can only be what

it has in the law relating to sale of goods.  Accordingly, this

Court  opined  that  the  expression  “sale  of  goods”  involves

existence of an agreement between the parties for the sale of

goods in which eventually property passes.

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14. The  judgment  of  the  first  case  of  Gannon  Dunkerley

(supra) necessitated  an  amendment  to  Article  366  of  the

Constitution.  Thus, the (Forty-Sixth Amendment) Act, 1982 to

the  Constitution  inserted  clause  29A  to  Article  366  of  the

Constitution,  inter alia,  inserting the definition of “tax on the

sale  or  purchase  of  goods”.   Insertion  of  clause  29A  thus

empowers  the States to levy the tax on deemed sale.   This

amendment enables States to levy tax on transfer of property

in  goods  involved  in  the  execution  of  works  contract.   The

validity of this Amendment was upheld by this Court in the

case of  Builders’ Association of India and others v. Union

of India and others - [(1989) 73 STC 370).

15. According to the judgment of the Constitution Bench of

this Court  in the case  of  M/s Gannon Dunkerley and Co.

and others v. State of Rajasthan and others – [(1993) 88

STC 204],  the measure  for  the levy of tax contemplated by

Article 366(29A)(b) of the Constitution is the value of the goods

involved in the execution of a works contract.

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16. In  this  case  we  are  concerned  with  Andhra  Pradesh

Value Added Tax Act, 2005.  Section 4 is the charging section.

It comes in Chapter III  which deals with ‘incidence, levy and

calculation of tax’.   In this case, we are concerned with the

taxability  of  works  contract.   That  subject  is  dealt  with by

Section 4(7) of the said 2005 Act.  In our view, Section 4(7) is a

Code by itself.  It begins with a non-obstante clause.  It, inter

alia,  states that every dealer  executing works contract shall

pay tax on the value of goods  at the time of incorporation of

such goods in the works executed at the rates applicable to

the goods under the Act.  The point to be noted is that Section

4(7)(a) of the 2005 Act indicates that the taxable event is the

transfer  of  property  in goods involved in the execution of  a

works contract and the said transfer of property in such goods

takes place when the goods are incorporated in the works, the

value of the goods which constitutes the measure for the levy

of  the  tax  is  the  value  of  the  goods  at  the  time  of  the

incorporation  of  the  goods  in  the  works.   What  is  stated

hereinabove  also  finds  place  in  Rule  17(1)(a)  of  the  APVAT

Rules 2005, quoted hereinabove.  It is important to note that

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each of the sub-contractors of L&T is registered dealer.  None

of them are unregistered.  Under Section 4(7)(a) read with Rule

17(1)(c), quoted above, where VAT dealer awards any part of

the  contract  to  a  sub-contractor,  such  sub-contractor  shall

issue a tax invoice to the contractor for the value of the goods

at the time of  incorporation in such sub-contract.   The  tax

charged in the tax invoice issued by the sub-contractor shall

be accounted by him in his returns.  Therefore, the scheme

indicates that there is a “deemed sale” by the dealer executing

the  work,  i.e.,  the  sub-contractor.   It  is  only  the  sub-

contractor  who  effects  transfer  of  property  in  goods  as  no

goods vests in the respondent company (contractor) so as to

be the subject-matter of a retransfer.  By virtue of Article 366

(29A)(b) of the Constitution once the work is assigned by the

contractor (L&T), the only transfer of property in goods is by

the sub-contractor(s)  who is a registered dealer in this case

and who claims to have paid taxes under the Act on the goods

involved  in  the  execution  of  the  works.   Once  the  work  is

assigned  by  L&T  to  its  sub-contractor(s),   L&T  ceases  to

execute  the  works  contract  in  the  sense  contemplated  by

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Article 366(29A)(b) because property passes by accretion and

there  is  no  property  in  goods  with  the  contractor  which  is

capable  of  a  retransfer,  whether  as goods or  in some other

form.

17. The question which is raised before use is : whether the

turnover of the sub-contractors (whose names are also given

in the original writ petition) is to be added to the turnover of

L&T.  In other words, the question which we are required to

answer  is  :  whether  the  goods  employed  by  the  sub-

contractors  occur  in  the  form  of  a  single  deemed  sale  or

multiple deemed sales.  In our view, the principle of law in this

regard  is  clarified  by  this  Court  in  the  case  of  Builders’

Association of India (supra) as under:

“Ordinarily  unless  there  is  a  contract  to  the contrary in the case of works contract the property in the goods used in the construction of a building passes  to  the  owner  of  the  land  on  which  the building  is  constructed,  when  the  goods  or materials used are incorporated in the building.”

(emphasis supplied by us)

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18. As stated above, according to the Department, there are

two deemed sales, one from the main contractor to contractee

and the other from sub-contractor(s) to the main contractor, in

the event of the contractee not having any privity of contract

with the sub-contractor(s).   

19. If one keeps in mind the above quoted observation of this

Court in the case of  Builders’ Association of India (supra)

the position becomes clear,  namely, that even if  there is no

privity  of  contract  between  the  contractee  and  the  sub-

contractor, that would not do away the principle of transfer of

property by the sub-contractor by employing the same on the

property belonging to the contractee.  This reasoning is based

on the principle of accretion of property in goods.  It is subject

to the contract to the contrary.  Thus, in our view, in such a

case  the  work,  executed  by  a  sub-contractor,  results  in  a

single  transaction  and  not  as  multiple  transactions.   This

reasoning is  also  borne out  by Section 4(7)  which refers  to

value  of  goods  at  the  time  of  incorporation  in  the  works

executed.  In our view, if the argument of the Department is to

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be accepted it would result in plurality of deemed sales which

would be contrary to Article 366(29A)(b) of the Constitution as

held by the impugned judgment of the High Court.  Moreover,

it  may result  in double  taxation  which may make  the  said

2005 Act vulnerable to challenge as violative of Articles 14, 19

(1)(g) and 265 of the Constitution of India as held by the High

Court in its impugned judgment.

20. Before concluding, we may refer to one more aspect.  It

appears that after the impugned judgment,  the Department

has  amended  Rule  17  of  the  APVAT  Rules,  2005  vide

Government Order dated 20.8.2007.  The position has been

clarified vide Rule 17(1)(c)  (as amended).   It  is now clarified

that where a VAT dealer awards any part of the contract to a

registered  sub-contractor,  no  tax  shall  be  payable  on  the

consideration  paid  for  the  sub-contract.   Therefore,  in  our

view, the principle to be adopted in all such cases is that the

property in the goods would pass to the owner/contractee on

its incorporation in the works executed.  This principle finds

place in sub-section 7(a) of Section 4 of the said 2005 Act.

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21. On the facts of the case, it has been urged on behalf of

the  Department  that  the  respondent  company  has  not

complied with the provisions of Rule 17(1)(c) as it stood at the

relevant time, which require the sub-contractor(s) to issue tax

invoice  to the L&T which invoices would have indicated the

value of the goods at the time of incorporation in such sub-

contract  and  which  would  have  indicated  the  tax  charged.

This point is seriously disputed.  According to the respondent

company it did produce all tax invoices received from the sub-

contractors  but  the  A.O.  proceeded  on the basis  that  there

were  two  deemed  sales,  one  from  main  contractor  to

contractee and the other from the sub-contractors to the main

contractor and consequently the A.O. did not look into the tax

invoices of the sub-contractor(s).  In this connection, we may

state  that  the  A.O.  decided  the  matter  on  principle.   The

respondent  company has annexed a list  to the original writ

petition in which it has given all the details regarding works

contract turnover including the value of the work done by the

sub-contractor(s).

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22. For the aforestated reasons, we see no reason even on

facts to interfere in the matter, however, in future we expect

the A.O. to call for individual contract(s), tax invoice(s) and call

such  particulars  require  to  be  submitted  by  the  assessee

before  adding  the  turnover  of  the  sub-contractor  to  the

turnover of the contractor.

23. We find  no  infirmity  in  the  impugned  judgment  dated

12.10.06  delivered  by  the  High  Court  in  the  Writ  Petition

No.12124  of  2006.   Accordingly,  this  civil  appeal  stands

dismissed with no order as to costs.  

……………………………J.                                    (S.H. Kapadia)

……………………………J.                                               (B. Sudershan Reddy)

New Delhi; August 26, 2008.   

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