JUDGMENT

R.M. LODHA, J.

1. Leave granted in all these special leave petitions.

2. Does the two-Judge Bench decision of this Court in K. Raheja Development Corporation v. State of Karnataka; (2005) 5 SCC 162[1] lay down the correct legal position? It is to consider this question that in M/s. Larsen & Toubro Limited & Anr. v. State of Karnataka & Anr.; SLP(C) No. 17741 of 2007[2] a two-Judge Bench of this Court has referred the matter for consideration by the larger ench. 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 :

“We have prima facie some difficulty in accepting the proposition laid down in Para 20 quoted above. Firstly, in our view, prima facie, M/s Larsen & Toubro - petitioner herein, being a developer had undertaken the contract to develop the property of Dinesh Ranka. Secondly, the Show Cause Notice proceeds only on the basis that Tripartite Agreement is the works contract. Thirdly, in the Show Cause Notice there is no allegation made by the Department that ther