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2012 (8) TMI 884 - HC - VAT and Sales TaxVocational educational institute - appointing franchises - whether the transaction in the petitioner's line of business were liable to be treated as subject to VAT in view of section 2(35) of the 2003 Act? Held that:- Applying the dominant nature test in respect of composite transactions where both an element of sale and that of service may be discernible and has held that unless the transaction composite in nature represents two clearly different and separate contracts, the State would not have the power to disintegrate the contract between that "for service" and "for the sale" components and levy (VAT) tax on the sale component. In the facts of the case a very contentious question of law has indeed arisen to be adjudicated by the statutory authorities and the Tax Board on the basis of the material as to the nature of transaction before them. The Tax Board has on lesser facts in the case granted absolute protection to the assessee therein during the pendency of the assessee's appeal before the Deputy Commissioner (Appeals) and stayed the demand and recovery. Apart from the merits of the petitioner's case, the unexceptional rule of uniformity of orders in similar cases springs to the aid of the petitioner herein. Dispose of the writ petitions setting aside the order dated August 7, 2012, passed by the Tax Board, and directing the Deputy Commissioner (Appeals) I, Commercial Taxes, Jaipur, to decide the appeals filed by the petitioner-company within a period of four weeks from the date of receipt of the certified copy of this order.
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