TMI Blog1996 (10) TMI 465X X X X Extracts X X X X X X X X Extracts X X X X ..... id works contract. 2.. The petitioners herein are all civil contractors and they had undertaken to execute works contract during the assessment years in question. They had also opted to pay taxes in terms of section 17(6) of the Act instead of under section 5-B of the Act. In all these cases, the assessing officers have levied tax at the rate of 2 per cent on the entire value of the works undertaken by the petitioners instead of restricting the same to the value of the goods involved in the execution of such contract. Section 17(6) of the Act to the extent it is relevant for the present purpose and as it stood prior to April 1, 1996 reads thus: Section 17(6).-Notwithstanding anything contained in sub-sections (1) to (3), subject to suc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lause (29-A) states that tax on the sale or purchase of goods includes among other things a tax on the transfer of property in the goods (whether as goods or in some other form) involved in the execution of a works contract. It does not say that a tax on the sale or purchase of goods included a tax on the amount paid for the execution of a works contract. It refers to a tax on the transfer of property in goods (whether as goods or in some other form) involved in the execution of a works contract. The emphasis is on the transfer of property in goods (whether as goods or in some other form). The latter part of clause (29-A) of article 366 of the Constitution makes the position very clear. While referring to the transfer, delivery or supply ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any levy under entry 54 of the State List is made subject to under the Constitution . 4.. In my opinion, keeping in view the law laid down by the Supreme Court, it is not open for the revenue to contend that the expression total turnover relating to transfer of property as appearing in section 17(6) of the Act should be read as total turnover relating to the value of the works contract. Such an interpretation cannot be given by applying any known and established rule of construction of statutes. Accordingly, it is held that the petitioners are liable to pay tax at the rate of 2 per cent on the total turnover relating to transfer of property in goods (whether as goods or any other form) involved in execution of the works contract under ..... X X X X Extracts X X X X X X X X Extracts X X X X
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