2014 AIR SCW 5362 ::2014 (7) SCC 1 ::(2014) 7 Scale 226 ::AIR 2014 SC (Civil) 2492 ::2014 (2) KLT SN 70 (SC)

Supreme Court Of India

Hon'ble Judge(s): R. M. Lodha, A. K. Patnaik, Sudhansu Jyoti Mukhopadhaya, Dipak Misra, F. M. Ibrahim Kalifulla , JJJ

(A) Constitution of India , Art.366(29A)— Works contract - Conceptual arena. Works contract is an indivisible contract but, by legal fiction, is divided into two parts, one for sale of goods, and the other for supply of labour and services; (ii) the concept of 'dominant nature test' or, for that matter, the 'degree of intention test' or 'overwhelming component test' for treating a contract as a works contract is not applicable; (iii) the term 'works contract' as used in Clause (29A) of Article 366 of the Constitution takes in its sweep all genre of works contract and is not to be narrowly construed to cover one species of contract to provide for labour and service alone; and (iv) once the characteristics of works contract are met with in a contract entered into between the parties, any additional obligation incorporated in the contract would not change the nature of the contract.(Para 42) (B) Constitution of India , Art.366(29A)— Works contract - Determination - Concept of manufacture - Not determining factor to decide whether contract is for supply of goods or is composite contract for sale and work. (Para 48) (C) Constitution of India , Art.366(29A)— Works....