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2008 (7) TMI 938 - HC - VAT and Sales TaxTax on execution of works contract - Held that:- The authorities below including the Tribunal were not justified to separate the works contract in two contracts, one for supply of goods and the other towards installation expenses. The contract was one and indivisible. Thus, it is held that the authorities below were not justified in law in imposing tax on the amount of ₹ 13,96,228.23 which was received by the applicant on account of execution of works contract. The assessing authority was not justified in levying the tax on the material used for the amount of ₹ 7,00,000 in execution of works contract. The question of law raised in the revision is therefore, decided in favour of the applicant and against the Department and demand of Central sales tax on supply of sprinklers used in execution of works contract is held contrary to law.
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