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2011 (1) TMI 1190 - HC - VAT and Sales TaxWrit petitions - respondent statedly suspended execution of the work, and kept it "on hold". The petitioner allegedly did not submit bills and, therefore, treated the value of the fibre cables laid as part of the work in progress and capitalised the same in the balance sheet. For the two assessment years, the petitioner filed returns declaring "nil" turnover - show-cause notice dated February 10, 2010 was issued proposing to levy tax under section 4(7)(a) of the VAT Act at four per cent and/or 12.5 per cent on the material used in executing the work of laying cables involved in the works contract entrusted by the second respondent to the petitioner – Held that:- Merely because the works are abandoned, or merely because a part of the material was used only by the employer, the works contractor cannot escape VAT liability. In this case, there is no dispute that the petitioner has fully or partially completed the work of laying fibre cables and, even if it is abandoned by the second respondent, the taxable event under section 4(7)(a) of the VAT Act does not vanish. We are, therefore, not able to accept the submission of the petitioners, writ petitions fail and are accordingly dismissed
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