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2011 (9) TMI 883 - HC - VAT and Sales TaxWhether section 11(2)(c) read with rule 6(e) should provide for various deductions as set out/prescribed by the honourable Supreme Court in Gannon Dunkerley's case [1992 (11) TMI 254 - SUPREME COURT OF INDIA] for the purpose of determining taxable turnover in case of a works contract? Held that:- Absence of provisions for various deductions in section 11(2)(c) and rule 6(e) in line with the judgment of the honourable Supreme Court in Gannon Dunkerley's case [supra] certainly creates uncertainty, so far levy of tax on works contract is concerned. To avoid such uncertainty, the State Government is directed to amend rule 6(e) to bring in line with judgment of the honourable Supreme Court in Gannon Dunkerley's case vis-a-vis section 11(2)(c) of the OVAT Act. Till such amendment is made to rule 6(e) of the OVAT Rules, the Commissioner of Sales Tax is directed to issue suitable instructions to all the taxing authorities to allow various deductions from the gross turnover to arrive at the taxable turnover in respect of works contract in terms of decision of the honourable Supreme Court in Gannon Dunkerley's case. WP allowed.
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