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2017 (5) TMI 1548 - HC - VAT and Sales TaxTaxability of works contract of Bleaching and dying - sales tax levied or not - Transfer of property in goods - Held that: - The Division Bench in the case of The State of Tamil Nadu rep. By the Deputy Commissioner Versus S. SM Processing Mills [2013 (10) TMI 486 - MADRAS HIGH COURT] held the fact that the chemicals used for bleaching is washed away in the process, by itself, would not be a justifiable ground to accept the case of the assessee that there was no transfer of property of any goods. The very fact of the yarn being bleached by a chemical process by applying the chemical will clearly point out that there is transfer of property of the chemicals, hence, bleaching contract attracts sales tax as in the case of dyeing contract, when the chemicals are purchased from outside the State. Penalty - Held that: - penalty set aside on the ground that there was no suppression of sale in the turnover. Revision allowed.
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