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2012 (7) TMI 856 - HC - VAT and Sales TaxTax levied of transfer of property - whether contract involves only pure labour in the sense that since the tiles are brought in by the customers themselves, the appellant only prints the design on the tiles so brought and there is no transfer of property involved? Held that:- From the material on record it is clear that the assessee has maintained accounts of works contract and accordingly he has paid composition tax on the total turnover of the works contract under section 17(6) of the Act. Similarly the authorities have not claimed any tax for similar works done within the State. They are claiming tax only in respect of works done for customers outside the State on the ground that the printing and design itself constitutes a property which is sold. As rightly pointed out by the Tribunal, the material used by the assessee for painting and design on the glazed tiles supplied by the customers outside the State do not constitute sale of goods, they are consumables used in execution of works contract. Therefore when section 5B is not attracted, section 17(6) is not attracted. Even otherwise it would be a case of inter-State sale. Thus KST is excluded. Revision dismissed.
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