TMI Blog2015 (2) TMI 52X X X X Extracts X X X X X X X X Extracts X X X X ..... nderstanding 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 v ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , laying and spreading of ready mix concrete at the customers' site is an outright sale of ready mix ? 3. The assessee is a manufacturer of ready mix cement concrete and the assessment was made under the provisions of Puducherry General Sales Tax Act. In the returns filed for the assessment year under consideration, the assessee claimed exemption as per the scheme then existing treating the transaction as works contract. From the clarification issued by the Commissioner, Commercial Taxes Department, Puducherry, as early as April 29, 2004, it is clear that carrying on works contract involving inseparable process of supplying and laying the cement concrete mixture was exempted by Notification G. O. Ms. No. 50/90/F6 dated December 10, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... went on appeal before the Sales Tax Appellate Tribunal, Puducherry. 5. On going through the nature of the contract, the Tribunal held that the assessee had entered into contract of sale of the cement concrete mixture with the buyer and charged the applicable rate of tax on such sale and raised sale bills. On a perusal of the sale invoices-cum-delivery challans, the Tribunal held that the invoice particularly mentioned the supply and laying of cement concrete mixture including transport charge. The Tribunal pointed out that the invoices produced would show that the assessee had charged separately for each category, viz., supply of material/cement concrete, charges for provision of labour, skill and technical support for laying of the same ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... v. State of Rajasthan [1993] 88 STC 204 (SC) and confirmed the assessment. Aggrieved by this, present revision by the assessee. 6. On the above 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 r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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