Larsen and Toubro Ltd. vs. State of Karnataka [Supreme Court] on Works Contract
R.M. Lodha, J. Chelameswar and Madan B. Lokur, JJ.

Civil Appeal No. 8672 of 2013 with C.A. Nos. 8673-8688, 8690-8693, 8695-8699 of 2013, decided on 26-9-2013

REPRESENTED BY : Dr. A.M. Singhvi, S/Shri K. V. Vishwanathan, N. Venkatraman, K. N. Bhat, Shekhar Naphade, Sr. Advocates, Sameer Parekh, Sumit Goel, Ms. Rukhmini Bobde, Ms. Somanadri Goud K. (for M/s. Parekh & Co.), Amol Chitale, Ms. Pragya Baghel, Nirnimesh Dube, Kamna Sagar, Ardhendumauli Kumar Prasad, Parimal Shroff, Mahesh Agarwal, Abhinav Agrawal, E. C. Agrawala, Ankur Saigal, R. V. Prasad, Praveen Kumar, Shivaji M. Jadhav, Sanjay Kunur, R. N. Keshwani, Rishi Agrawala, Prasenjit Keswani, Ms. Ranjeeta Rohtagi, V. Patkar, Ashwin Acharya, S. Ravi Shankar, Sanjay V. Kharde, Ms. Naira Jejeebhoy, Ms. Asha Gopalan Nair, Ms. Anitha Shenoy, Ms. Neha Singh, Chinmoy Khaladkar, Preshit V. Surshe, Sachin J. Patil, Randhir Chawla, Ms. Renu Saigal, Amit Thakkar, V. N. Raghupathy, Advocates., with them for the appearing parties.

[Judgment per : R.M. Lodha, J.]. – Leave granted in all these special leave petitions.

2.Does the two-Judge Bench decision of this Court in  Raheja Development [K. Raheja Development Corporation v. State of Karnataka; (2005) 5 SCC 162 = 2006 (3) S.T.R. 337 (S.C.)] lay down the correct legal position? It is to consider this question that in Larsen and Toubro [M/s. Larsen & Toubro Limited & Anr. v. State of Karnataka & Anr.; SLP (C) No. 17741 of 2007] a two-Judge Bench of this Court has referred th+e 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 :
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