Judgment S. B. SINHA AND N. ROY, JJ. 1. Whether a building contractor executing works contract within the meaning of the provision of section 2 (ww) of the Bihar Finance Act, 1981 (hereinafter called and referred to for the sake of brevity of "the said Act") will be entitled to get the benefits of purchasing goods at concessional rates as prescribed under section 8 (1) (b) of the Central Sales Tax Act, 1956 , on furnishing declaration in form C, is the question involved in this application. 2. 2. The petitioner admittedly carried on works contract and is a registered dealer within the meaning of section 14 of the Bihar Finance Act, 1981 (annexure 1) as also under section 7 (2) of the Central Sales Tax Act, 1956 (annexure 2 ). 3. 3. The petitioner has contended that it had been making purchase of goods in the course of inter-State trade or commerce for use thereof in the execution of works contract on the basis of form C furnished to the concerned dealers. 4. 4. The petitioner filed an application on August 16, 1980 for issuance of one book of form C but the respondent No.4, by an order dated August 16, 1984 (annexure 4) refused to issue the same mentioning "in case of contractors/builders form C cannot be issued to be used at present". 5. 5. The learned counsel appearing on behalf of the petitioner has raised a short question in support of this application. 6. 6. The learned counsel submitted that a dealer like the petitioner who carries on the business of works contract being a "dealer" within the meaning of the provisions of section 2 (e) of the Bihar Finance Act, 1981 and being registered both under the said Act as also the Central Sales Tax Act, cannot be denied the benefits of using form C while making purchase in the course of inter-State trade or commerce. 7. The learned counsel, in this connection, has strongly relied upon in Builders Association of India V/s. Union of India [1989] 73 STC 370 (SC); AIR 1989 SC 1371 as also a judgment of a Division Bench of the Andhra Pradesh High Court in Unitech Ltd. V/s. Commercial Tax Officer [1991] 83 STC 207; 1991 APSTJ 176. 8. 7. 7. The learned counsel, in this connection, has strongly relied upon in Builders Association of India V/s. Union of India [1989] 73 STC 370 (SC); AIR 1989 SC 1371 as also a judgment of a Division Bench of the Andhra Pradesh High Court in Unitech Ltd. V/s. Commercial Tax Officer [1991] 83 STC 207; 1991 APSTJ 176. 8. 7. In terms of section 2 (b) of the said Act (CST Act ?), a "dealer"is a person, who carries on (whether regularly or otherwise) the business of buying, selling, supplying or distributing goods, directly or indirectly, for cash or for deferred payment, or for commission, remuneration or other valuable consideration. 9. Sec.2 (c) (of the CST Act ?) defines "declared goods" to mean goods declared by Parliament to be of special importance in inter-State trade or commerce within the meaning of article 286 of the Constitution of India. 10. Sale has been defined in section 2 (t) of the said Act, to include transfer of property in goods (whether as goods or in some other form) involved in the execution of a works contract. 11. 8. Sec.2 (ww) of the said Act defines "works contract" to mean any agreement for carrying our for cash or deferred payment or other valuable consideration the construction, fitting out, improvement or repair of any building road, bridge or other immovable or movable property. 12. 9. From a conjoint reading of the aforementioned provisions, there cannot be any doubt that a person who carries on the business of "works contract" may transfer property in goods whether as goods or in some other form and as he sells "goods" involved in the works contract and thus becomes a "dealer" within the meaning of the provisions of the said Act. 13. 10. As indicated hereinbefore, the petitioner is a registered dealer both under the provisions of the said Act as also under the Central Sales Tax Act. 14. 11. Sec.8 (3) (b) of the Central Sales Tax Act reads as follows : 15. " (3) The goods referred to in clause (b) of sub-section (1) - 16. (a ). . . . . . . . . . . . . . . . . . . 17. 14. 11. Sec.8 (3) (b) of the Central Sales Tax Act reads as follows : 15. " (3) The goods referred to in clause (b) of sub-section (1) - 16. (a ). . . . . . . . . . . . . . . . . . . 17. (b) are goods of the class or classes specified in the certificate of registration of the registered dealer purchasing the goods as being intended for resale by him or subject to any rules made by the Central Government in this behalf, for use by him in the manufacture or processing of goods for sale or in mining or in the generation or distribution of electricity or any other form of power. " 18. 12. Form a bare perusal of the aforementioned provisions, therefore, it is clear that the goods specified in the certificate of registration of the registered dealer purchasing the goods intended for resale by him. Such resale, however, may be subject to any rules made by the Central Government in this behalf. 19. 13. In this case, according to the petitioner, as they are utilising the goods which they have been purchasing in the course of inter-State trade or commerce upon furnishing of form C of their seller is utilised in the execution of the works contract, which in view of clause (29-A) of article 366 of the Constitution of India comes within the purview of the definition of "tax on the sale or purchase of goods". 20. Thus, transfer of goods in the execution of works contract whether in the form of goods or otherwise will come within the purview of the aforementioned provisions. 21. 14. Clause (29-A) of article 366 of the Constitution of India thus creates a legal fiction. 22. In East End West Dwellings Co. Ltd. V/s. Finsbury Borough Council, reported in [1952] AC 109, Lord Asquith stated the law thus : 23. " If you are bidden to treat an imaginary state of affairs as real, you must surely, unless prohibited from doing so, also imagine as real the consequences and incidents which, if the putative state of affairs had in fact existed, must inevitably have flowed from or accompanied it. " If you are bidden to treat an imaginary state of affairs as real, you must surely, unless prohibited from doing so, also imagine as real the consequences and incidents which, if the putative state of affairs had in fact existed, must inevitably have flowed from or accompanied it. The statute says that you must imagine a certain state of affairs; it does not say that having done so, you must cause or permit your imagination to boggle when it comes to the inevitable corollaries of that state of affairs. " 24. The aforementioned passage has been quoted with approval by the Supreme Court in Pandurang Vinayaka V/s. Commissioner of Income-tax AIR 1953 SC 244 , Commissioner of Income-tax V/s. S. Teja Singh [1959] 35 ITR 408; AIR 1959 SC 352 and Additional Income-tax Officer V/s. E. Alfred [1962] 44 ITR 442; AIR 1962 SC 663 . 25. 15. The Supreme Court in Builders Association of India V/s. Union of India [1989] 73 STC 370; AIR 1989 SC 1371 , while considering the question of vires of the Constitution 46th Amendment whereby clause (29-A) was introduced in article 366 of the Constitution held : 26. " Hence, a transfer of property in goods under sub-clause (b) of clause (29-A) is deemed to be a sale of the goods involved in the execution of works contract by the person making the transfer and a purchase of those goods by the person to whom such transfer is made. " 27. 16. The Supreme Court proceeded to observe : 28. " When the law creates a legal fiction such fiction should be carried to its logical end. There should not be any hesitation in giving full effect to it. If the power to tax a sale in an ordinary sense is subject to certain conditions and restrictions imposed by the Constitution, the power to tax a transaction which is deemed to be a sale under article 366 (29-A) of the Constitution should also be subject to the same restrictions and conditions. Ordinarily unless there is a contract to the contrary in the case of a works contract the property in the goods used in the construction of a building passes to the owner of the land on which the building is constructed, when the gods or materials used are incorporated in the building. Ordinarily unless there is a contract to the contrary in the case of a works contract the property in the goods used in the construction of a building passes to the owner of the land on which the building is constructed, when the gods or materials used are incorporated in the building. The contractor becomes liable to pay the sales tax ordinarily when the goods or materials are so used in the construction of the building and it is not necessary to wait till the final bill is prepared for the entire work. " 29. 17. It is, therefore, clear that if the transfer of goods involved in a works contract by reason of a legal fiction is deemed to be a "sale" and the seller is entitled to all the benefits granted to him under the provisions of the said Act and the Central Sales Tax Act. 30. 18. In a recent Full Bench decision in C. W. J. C. No.802 of 1990 (R) [reported as Builders Association of India V/s. State of Bihar in [1992] 85 STC 362 (Par) [fb]. ] and other analogous cases, one of us (S. B. Sinha, J.) has held as follows : 31. " By reason of legal fiction created in terms of clause (29-A) of article 366 of the Constitution of India, a works contractor becomes a dealer within the meaning of the said Act, he in my opinion, would also be entitled to have all the privilege conferred thereunder. " 32. 19. The views which we have taken also finds support form the decision of the Andhra Pradesh High Court in Unitech Ltd. s case [1991] 83 STC 207. 33. 20. For the reasons aforementioned, this writ application must be allowed and the impugned orders, as contained in annexures 4 and 6 of the writ application are, therefore, quashed. 34. However, in the facts and circumstances of the case, there will be no order as to costs. 35. Writ petition allowed.