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2012 (10) TMI 966 - HC - VAT and Sales TaxComposite contract for civil, electricity and sanitary denied - Held that:- In the instant case, the entire works contract was a composite and indivisible one and in fact what was agreed there and intended between the parties was not to supply the materials in the course of contract, but as and when such material (electrical and sanitary) were embedded in contractual work involved, then they became the property of the other party. Hence, there would be no question of sale of such material by the contractor to the other. The entire transaction was a clear works contract and did not involve any sale. The petitioner constructed the entire works according to the specification contained in the agreement and in construction thereof received the payment. In both the agreements there was neither a contract to sell the material used in the construction, nor does the property passed therein as movable property. After the date of agreement of contract, the petitioner had purchased material for amount of ₹ 2,01,950 to which he placed list which were exempted from tax. In respect of purchase of ₹ 2,73,522 no evidence was placed, therefore, the material of ₹ 2,73,522 was treated as inter-State purchase for using in works contract. Thus, vide order dated January 31, 1993 tax demand of ₹ 36,104 was imposed upon the petitioner. W.P. dismissed.
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