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2017 (2) TMI 1210 - ALLAHABAD HIGH COURTWorks contract - disallowance of expenses - labour charges - Rule-9 of the VAT Rules - Held that: - Rule-9 regulates determination of turnover in a works contract. It is clear that the amount representing the value of service and labour and profit thereon is liable to be deducted if it is included in the gross amount received in respect of works contract - there is no finding returned in the order to discard the books of account of the assessee, holding that accounts maintained by the dealer are not worthy of credence or that the amount payable towards the labour has not been separately shown. 20% amount towards labour charges could be held admissible for deduction, by virtue of Rule-9(3) of the Rules, in a case where the amount payable towards labour charges are not separately shown or that the accounts maintained by the dealer are not worthy of credence - Since in the facts of the present case this Court finds that the required exercise warranted at the level of the authorities to deal with the liability of the assessee to pay VAT with reference to the provisions contained under Rule-9 of the Rules, have not been under taken, as such, the Tribunal was not justified in rejecting the claim of the assessee. The authorities were not justified in denying the benefit admissible to the assessee under Rule-9(1)(d) of the Rules - revision allowed - decided in favor of assessee.
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