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2011 (4) TMI 1246 - HC - VAT and Sales TaxWhether, in the facts and circumstances of the case, the respondent is legally justified in considering that the order dated September 13, 2007, passed by the appellate authority as in annexure E is erroneous and prejudicial to the interest of the Revenue and warranting revision under section 22A(1) of the Act? Whether the appellant that has purchased machinery spares from outside the State and used the same in the execution of works contract of asphalting of road is eligible or otherwise for composition assessment under section 17(6) of the Act? Held that:- It is not the requirement of law that in the course of using such goods, the title to the goods should be transferred to the customer. In the nature of things, when machinery is purchased or received from outside the State for the purpose of using them in the execution of the works contract, neither title in the machinery will pass on to the customer nor that machinery will be used as raw material in the works to be carried out. It is a tool which is used to execute the contract. Therefore, the intention of the Legislature is very clear, unambiguous and it does not require any interpretation at all. In that view of the matter, the order passed by the revisional authority is patently erroneous, contrary to the statutory provisions and cannot be substained. Therefore the substantial questions of law is answered in favour of the assessee and against the Revenue. Appeals are allowed.
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