Theory of Accretion against the department

In the last article we discussed the issue of levy of VAT on construction due to the logic by way of theory of accretion. Applying the same logic Larsen & Toubro in a landmark case was able to claim the exemption of the portion of the turnover which was sublet by it to its sub-contractor. Lets look at the facts of the case by way of a simple example :-
Client ABC awards a work to the Contractor PQR of Rs. 100. Contractor PQR executes a portion of work on its own and sublets the balance scope to another sub-contractor M/s XYZ for Rs. 30. Applying the theory of accretion on the value of work of Rs. 30 which is executed by the sub-contractor, can it be said that the deemed sales has taken place between M/s XYZ i.e. the sub-contractor and M/s ABC, the client without any contract between them. The issue is that we may imagine deemed sale happening once, but assuming the same to happen multiple times may be an exaggeration of the theory of accretion.
Hence in the given case M/s PQR, the contractor is only liable to offer Rs. 70 as his taxable turnover and not Rs. 100 because of a landmark judgement of the Apex Court in the case of State of Andhra Pradesh Vs. Larsen &Toubro, 2008 (9) SCC, where the court has held that  :-(http://judis.nic.in/supremecourt/imgs1.aspx?filename=32318).
(i) There is only one transfer of property in goods. There is no re-transfer or multiple/plurality of deemed sales.
(ii) There can be incidence of levy, only once. When the property passes from the sub-contractor to the contractee or the customer, even though there is no privity of contract between the sub-contractor and the customer and the contract, if at all exists only between the customer and the main contractor.
(iii) Consequently, it is not possible to tax the sub-contractor‟s turnover to the taxable turnover of the main contractor and assess the sub-contractor‟s turnover in the hands of the main contractor. It is also not possible to tax the transaction twice, both in the hands of the main contractor and the sub contractor, as property passes only once, through the principle of accretion and there is no re-transfer.