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2015 (2) TMI 52 - HC - VAT and Sales TaxWorks contract - supply, laying and spreading of ready mix concrete - Exemption under Notification G. O. Ms. No. 50/90/F6 dated December 10, 1990 - Non production of invoice copy showing price of the material and labour charges separately - Whether, in the facts and circumstances of the case, and in law, a the Appellate Tribunal was right in law in holding that the supply, laying and spreading of ready mix concrete at the customers' site is an outright sale of ready mix - Held that:- On the narration regarding the nature of the activity of the asses-see, it is clear that the Tribunal totally misdirected itself in its understanding of the principle of works contract. As is evidenced from the reading of terms of the agreement referred to in the order of the Tribunal, it is clear that the nature of works entrusted to the assessee is not supplying ready mix concrete mixture simpliciter; on the other hand, the assessee was to provide men and materials in laying concrete mixture on the area specified by the purchaser. The supply had to be done through its staff and that the assessee was responsible for quality of the concrete and the laying also Further in the event of any leakage arising therefrom in future, the responsibility was cast upon the assessee to compensate the same. When that being the case, we do not find any justifiable ground in the Tribunal's view that on the mere absence of the word "works contract" in the agreement, the transactions have to be treated as sale. Thus, on going through the nature of the work executed and the agreement and the responsibility cast upon the assessee on the quality, we have no hesitation in accepting the plea of the assessee that the transaction is one of works contract and that the assessee is entitled to have the benefit of exemption as had been pointed out in Government order referred to in circular dated April 29, 2004, viz., G. O. Ms. No. 50/90/F6 dated December 10, 1990. - we set aside the order of the Tribunal, holding that the transaction is a composite works contract involving men and labour - Decided in favour of assessee.
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