conditions must be fulfilled; (i) there must be a works contract, (ii) goods should have been involved in execution of a works contract, and (iii) property in those goods must be transferred to a third party, either as goods or in some other form. The building contracts are species of works contract. A contract may involve both, a contract of work and labour, and a contract for sale. A transfer of property in goods under clause 29A (b) of Article 366, is deemed to be a sale of goods involved in execution of a works contract by person making transfer and purchase of those goods to a person, to whom such transfer is made. A single and indivisible contract, now, by Forty-Sixth Amendment, has been brought on par with a contract containing two separate agreements and the States have now power to levy sales tax on value of material in execution of works contract. The transfer of movable property in a works contract is deemed to be sale, even though it may not be sale within the meaning of Sale of Goods Act. Taxing the element of sale of goods in a works contract under Article 366(29A)(b), read with Entry 54 List II, is permissible even after incorporation of goods, provided tax is directed to the value of goods and does not purport to tax transfer of immovable property. The value of goods which can constitute measure for levy of tax, has to be value of goods at the time of incorporation of goods in works even though property passes as between developer and flat purchaser after incorporation of goods. Distinguishing the opinion expressed in Raheja Development Corporation Vs. State of Karnataka, (2005) 5 SCC 162, it was observed that in that case the
