GSTR No.45 of 2005 -1- IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH GSTR No.45 of 2005 DATE OF DECISION: February 26, 2010 POWER GRID CORPORATION OF INDIA LTD., HISAR ...PETITIONER VERSUS STATE OF HARYANA ...RESPONDENT CORAM: HON'BLE MR. JUSTICE ASHUTOSH MOHUNTA. HON'BLE MR. JUSTICE MEHINDER SINGH SULLAR. PRESENT: MR. SANDEEP GOYAL, ADVOCATE AND MR. RISHABH KAPOOR, ADVOCATE FOR THE PETITIONER. MR. GAGANDEEP SINGH WASU, DAG, HARYANA. ASHUTOSH MOHUNTA, J.(ORAL) The Tribunal has referred the following question of law for adjudication to this Court:- (i) Whether the cement and steel supplied by the appellant company to the contractor is not includible in the gross turnover/taxable turnover of the dealer, as no goods were ever transferred from the appellant company to the contractor and goods were delivered to them only as bailment? (ii) Whether there was sale of goods by the contractor in view of the contract between the parties whereunder the custody and control of the goods remained with the Corporation (contractee) and goods were used only in GSTR No.45 of 2005 -2- the construction under that contract?” The aforementioned question of law stands squarely answered in N.M.Goel & Co. vs. Sales Tax Officer, Rajnandgaon and another, reported as STC(72) 368 and has subsequently been followed in Karya Palak Engineer, CPWD, Bikaner vs. Rajasthan Taxation Board, Ajmer and others, reported as (2004) 7 Supreme Court Cases 195, wherein it has been held that supply of material by the contractee to the contractor would constitute a sale, so as to attract the provisions of Haryana General Sales Tax Act and would be liable to tax. In view of the above, this reference is answered in the same terms as in N.M.Goel's case (supra), against the assessee and in favour of the Revenue. (ASHUTOSH MOHUNTA) JUDGE February 26, 2010 (MEHINDER SINGH SULLAR) Gulati JUDGE