Home Case Index All Cases VAT and Sales Tax VAT and Sales Tax + HC VAT and Sales Tax - 2010 (9) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2010 (9) TMI 982 - HC - VAT and Sales TaxWhether the Sales Tax Appellate Tribunal committed an error of law in confirming the tax demand under section 3B of the Tamil Nadu General Sales Tax Act, 1959 on the income received by the petitioners for the performance of annual maintenance contracts executed by the petitioners, while failing to note that the same were purely service agreements entered into by the petitioners with the users of computers, no part of the income being attributable to sale of goods? Whether the Sales Tax Appellate Tribunal committed an error of law in holding that the chartered accountant certificate filed by the petitioners to show the actual consumption of spares used in the annual maintenance contract could not be relied upon to determine the value of material used in the contract for the purpose of determining liability under section 3B of the Tamil Nadu General Sales Tax Act, 1959 when in fact the provision did not prevent the filing of a chartered accountant certificate to establish the cost of material used in the contract? Held that:- After the period of nearly 20 years, it would be a futile exercise for the assessing authority to examine the materials placed by the petitioner for arriving at the cost of parts used and instead fixing such cost of materials at 25 per cent of the value of the annual maintenance contract, would meet the ends of justice and that such fixation of 25 per cent can be held to be exclusively for the assessment years concerned in these revisions and not quoting it as a precedent for any other assessment years and thereby put a finality to the assessment to be made in the case on hand. In that view, we dispose of all these revisions holding that the learned counsel for the petitioner also agrees for fixing the percentage of value of spares involved at 25 per cent of the value of annual maintenance contract of the respective assessment years. We, therefore, dispose of all these revisions by holding that annual maintenance contract would fall under section 3B of the TNGST Act and as far as the actual value of material property transferred in the course of execution of such annual maintenance contract, the assessment years covered by these revisions are concerned, we fix it at 25 per cent. and direct the respondent to levy tax on that basis.
|