JUDGMENT

Venkataswami, J.

1. Common questions of law arise out of a common judgment of the West Bengal Taxation Tribunal dated 26-4-1990 rendered in RN-30(T), RN-31(T), RN-34(T), RN-I03(T), RN-367(T). RN-138(T), RN-338 and RN-339 of 1989.

2. The appellants are contractors and they execute civil construction works including construction of roads and bridges under different departments of the Central and State Governments as well as respective Corporations. Such works include excavation of earth, drilling, construction of water channel and river bank protection. Such works of contract were not brought under the net of sales tax till the Bengal Finance (Sales Tax) Act, 1941 (6 of 1941) (hereinafter referred to as "the Act") was amended by the West Bengal Act 4 of 1984 inserting Section 6-D and amending Section 2(c) of the Act. These amendments were pursuant to the 46th Amendment of the Constitution oflndia in the year 1982 inserting Clause 29-A in Article 366.

3. The constitutional validity of the 46th Amendment inserting Clause 29-A in Article 366 was challenged and this Court in Builders Assn. of India v. Union of India, AIRI989 SC 1371 , 1989 (2 )ARBLR356 (SC), (1989)2 CompLJI (SC), JTI989 (2 )SC 47 , 1989 (1 )SCALE770 , (1989 )2 SCC645 , [1989 ]2 SCR320 , [1989 ]73 STC370 (SC ) upheld the constitutionality of the said amendment.

4. As a result of the insertion of Section 6-D to the Act, all transfer of property in goods (whether as goods or in some other form) involved in the execution of a works contract was deemed to be a sale of those goods by the person making the transfer and the purchase of those goods by the person to whom such transfer was made. The Revenue sought to assess the appellants under of purchasing goods in West Bengal in specified circumstances or any person making a sale under Section 6-D ....

6-D. (I) Liability to payment of tax on the transfer of property in goods involved in the execution of works contract and rate thereof.--(I) Notwithstanding anything contained elsewhere in this Act,n

(a) any transfer of property in goods (whether as goods or in some other form) involved in the execution of a works contract (hereinafter referred to as contractual transfer) shall be deemed to be a sale of those goods by the person making the transfer and the purchase of those goods by the person to whom such transfer is made;

(b )(i) every dealer whose contractual transfer price during the last year ending on or before the 31 st day of March, 1984 exceeds rupees two lakhs shall, in addition to the tax payable by him under Section 5 and Section 6-B, if any, be liable to pay from the 1st day of April, 1984 a tax at the rate specified in Sub-section (3) of such part of his contractual transfer price as specified in Sub-section (2);

(ii) every dealer, other than a dealer referred to in Sub-clause (i), whose contractual transfer price during any year ending on or after the I st day of April, 1984 exceeds rupees two lakhs shall, in addition to the tax payable by him under Section 5 and Section 6-B, if any, be liable to pay from the first day of the year immediately following such year a tax at the rate specified in Sub-section (3) of such pan of his contractual transfer price as specified in Sub-section (2);

(iii) every dealer who has become liable to pay tax under Sub-clause (i) or Sub-clause (ii) shall continue to be so liable until the expiry of three consecutive years during each of which the contractual transfer price does not exceed rupees two lakhs and on the expiry of such three years his liability to pay such tax shall cease;

(iv) every dealer, whose liability to pay tax has ceased under the provisions of Sub-clause (iii), shall, if the contractual transfer price during any year again exceeds rupees two lakhs, be liable to pay from the first day of the year immediately following such year the tax at the rate specified in Sub-section (3) of such part of this contractual transfer price as specified in Sub-section (2).