TMI Blog2008 (1) TMI 604X X X X Extracts X X X X X X X X Extracts X X X X ..... to elect to pay the tax under section 17(6) of the Act, since admittedly the appellant received the goods by way of stock transfers from outside the State for the purpose of using such goods in the execution of works contract. Therefore, the first question of law raised by the appellant has been rightly answered against the assessee. The language used in sub-section (7) of section 17 is very clear. The expression "receives" would encompass receipt in any manner. Receipt by branch transfer is covered by the said expression. The High Court was, therefore, justified in dismissing the revision petition. No scope for taking a different view in view of the clear language of sub-section (7) of section 17 as amended with effect from April 1, 200 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ataka. It is a sub-contractor for M/s. Larsen and Toubro Ltd. for execution of works contract. It is registered as a dealer under the Act as well as Central Sales Tax Act, 1956 (in short, "the Central Act"). It had opted for composition under section 17(6) of the Act. But the benefit of composition was denied in view of the amendment to sub-section (7) of section 17. The appellant undisputedly had received goods from the head office situated at Gujarat for execution of the work in Karnataka. Stand of the appellant before the departmental authorities and the Tribunal was that the receipt of goods from the head office does not amount to receiving of goods. The Tribunal referred to sub-section (7) of section 17 as amended by Act No. 5 of 200 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xth Schedule to the Act. Rule 8B of the Karnataka Sales Tax Rules, 1957 (for short, "the Rules") provides the procedure for composition of tax in the case of dealers executing works contract. Sub-rule (1) of rule 8B of the Rules envisages that the assessee/dealer shall submit an application in form 8-AA to the assessing authority each year seeking composition benefit within one hundred and twenty days from the date of commencement of the assessment year or of the business, if he has commenced the business during the course of the year. Sub-rule (2) of rule 8B of the Rules mandates that the assessing authority after receipt of such application from the dealer/assessee, and after verifying the same, may permit the dealer, subject to the c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from the date of commencement of such year before the assessing authority to accept in lieu of tax payable under section 5B of the Act on the total value of the works contract being executed by him. The key words under section 17(6) of the Act are the tax payable during the year by way of composition an amount on the total consideration for the works executed by the contractor in that year in the State. Option to be exercised for composition benefit is not dependent on the dates of the agreements entered into by the parties for execution of the works contract. Under rule 8B(1) of the Rules, the dealer/assessee is required to submit the application seeking composition benefit for each assessment year within the time prescribed from the date ..... X X X X Extracts X X X X X X X X Extracts X X X X
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