The judgment emphasizes the importance of resolving disputes between the Union of India and the State of Rajasthan through a high-level committee before resorting to litigation, in line with the guidelines set by the Supreme Court.

S.K. Keshote, J.-These four petitions are not only identical but the parties are also commonnd therein the identical point of law for consideration of this Court has been raised. These matters in fact and substance are identical as these four writ petition are against assessments of sales tax made for four different assessment years. Hence, these four petitions are taken up for hearing together and are being disposed of by this common order.

2. For the disposal of these matters, the facts and the grounds raised to challenge the assessment orders of the sales tax passed by respondent No. 3 are taken from the writ petition No.2020/2001.

3. Thepetitioners to carry out enormous construction works in connection with the developmental works carried out by the Ministry of Defence throughout the State of Rajasthan, they have to undertake the construction work of buildings for housing, offices and the residential accommodations of their officers and staff besides other defence work. In order to get these works done, the petitioners award contracts to various contractors and also supply to them building materials such as cement and steel. The petitioners purchase cement and steel from various reputed concerns not only within the State of Rajasthan but also from outside the State. The petitioners state that they are to pay to the sellers of such materials, sales lax leviable on such sales apart from the actual price of the goods sold. So far as the purchase of building materials within the State is concerned, the petitioners pay to the sellers thereof the sales tax on the value of such building materials within the meaning of the Rajasthan Sales Tax Act, 1994 (hereinafter referred as “the act of 1994”). The purchase of goods from outside the State of Rajasthan falls within the ambit of inter-state trade and commerce, the non- petitioners are not authorised to levy sales tax on the purchase of such goods as provided under Article 301 of the Constitution of India. This way and the manner the petitioners are purchasing the building materials namely cement and steel from various suppliers/sellers within and outside the State of Rajasthan and in order to get the constructions works undertaken through their contractors and supplying these goods to these contractors. The price of the goods so supplied to the contractors are completely adjusted in the final bill of the contractors and the contractors are paid the total construction value minus the price of the building materials supplied to them. The petitioners are also deducting from the final bill of the contractors sales tax as per the prescribed rate and same is deposited with the Sales tax Department. It is the case of the petitioners that they are not required under the law to get themselves registered with the non- petitioners as dealer within the meaning of Section 2(14) of the Act of 1994. The fact

that the petitioners are making purchase of goods from various suppliers/sellers and making such goods available to their contractors is informed to the non-petitioners vide their letter dated 16.3.2001. The reference has also been made to the conditions No. 10 of IAWF-2249, General Conditions of contract that after issue of the building materials to the contractors under Schedule ‘B’ the materials shall be under joint custody of the petitioners and contractor with double lock arrangement and the contractor is bound to use the cement in the particular work for which the same are issued as per the directions of the Engineer incharge. The position of cement consumed and stock available is being daily submitted by the contractor to the Department. Since the consumption of Schedule ‘B’ stores for other purposes is not permitted and for any misuses or even excess consumption of Schedule ‘b’ materials in the work, the contractor is liable to return the excess issued/consumed quantity to the department failing which the recovery at the rate of double market price as per contract conditions