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2010 (3) TMI 1028 - HC - VAT and Sales TaxWhether the Tribunal is justified in giving a finding that the transactions between the assessee-company and the Indian Air Force which is bilateral shall not be treated as sale or works contract for the purpose of taxation under the KST/CST Acts? Whether the assessee-company, being an independent legal entity registered under the Companies Act as a company is a separate entity by itself which is different from Ministry of Defence? Whether the Tribunal is right in considering the works contract executed by the assessee-company as inter-State works contract not eligible to levy of tax? whether the Tribunal is justified in holding that the sales effected by the assessee-company to the Indian Air Force cannot be construed as inter-State sales attracting the levy of tax under the CST Act? Held that:- The assessing officer could not pass an order by examining the relevant records and the nature of transaction between the assessee and its customers in detail and similar handicap was there for the first appellate authority and so far as the order of the Tribunal is concerned, the Tribunal without considering the factual aspect relying upon certain decisions has given judgment which according to us requires to be set aside and the matter requires to be re-considered by the assessing officer by giving an opportunity to the respondent-assessee. The respondent-assessee is also permitted to produce all necessary documents before the assessing officer in order to claim exemption. Assessing officer, considering the nature of transaction between the assessee and the Defence Department and the transaction between the assessee and third parties and inter-State sale and so also sale transaction within the State shall take appropriate decision in accordance with law.
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