Honble BALIA, J.–These two appeals raise a common question about the consti- tutional validity of Explanation II to Sec. 2(38) of the Rajasthan Sales Tax Act 1994 (here- inafter called the Act of 1994) on the envil that it is ultra vires the legislative competence of the State Legislature to enact a law by providing that `notwithstanding the agreement for works Contract has been wholly on in part entered into outside the State or the goods have been wholly or in part moved outside the State, still it shall be deemed to be sale inside the State if the goods are in the State at the time of their use, application or incorporation in the execution of works contract as it impinges on Item 92A of the Union list of Schedule VII and the provisions of Article 286 of the Constitution of India.

(2). We may notice the facts in brief giving rise to these two appeals separately.

(3). Appeal No. 1538/99 arises out of dismissal of writ petition No. 4983/99. The assessee, which is a company covered under the Companies and having its registered office at Okhla Industrial area, Phase I New Delhi entered into a turn key contract with M/s Sriganganagar Sugar Mills for design, manufacture, supply, transpo

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