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2014 (3) TMI 1043 - HC - VAT and Sales TaxSeeking direction for amending certificate of registration of the petitioner-company under the CST Act, 1956 - Whether a civil works contractor is entitled to include machinery, tools and equipment used for execution of works contracts and accessories, in the certificate of registration under the CST Act, to claim the concessional rate of tax on inter-State purchase of such equipment, under section 8(3)(b) of the CST Act, read with rule 13 of the CST Rules, 1957 - Engaged in the construction of bridges, flyovers, roads and multi-storied buildings - Held that:- it was not necessary that the property in the plant, machinery or equipment should be transferred to the contractees, which would be a case of resale simpliciter. Section 8(3)(b) of the CST Act was not confined only to purchase for the purpose of resale, but expressly covered plant, machinery, equipment, etc., if required for use in the manufacture or processing of goods for sale. Such goods for sale could be in the form of goods or in any other form. In other words the goods of sale might undergo a transformation, alteration or change. In the case of a works contract too, articles integral to the process of manufacture such as tools, plant, machinery, equipment, for example concrete mixers, pumps, hydraulic mobile cranes, vehicles, computers is used for preparing plans designs, etc., vehicles used for carrying construction materials, etc., and other similar articles would be eligible for concessional tax even though such goods may not actually be incorporated in execution of the contract. Therefore, the Joint Commissioner of Sales Tax, erred in law in refusing to amend the certificate of registration of the petitioner under the Central Sales Tax Act, 1956, by adding construction equipment, machinery and tools such as hydraulic mobile crane, vehicle, pump material, computer, accessories, office equipment, etc., used in the process of execution of a works contract in the certificate of registration under the Central Sales Tax Act and it should be included in the registration certificate. - Decided in favour of petitioner
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