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2013 (10) TMI 822 - MADRAS HIGH COURTReopening of assessment u/s 16 - Nature of work - whether works contract or contract of sale - Held that:- assessee is a sub contractor to M/s.Larsen and Toubro, who was granted contract for manufacture and supply of GRP pipes with required diameter with couplings and all necessary fittings and the transportation to the site and for laying, jointing and hydro testing and commissioning of the sewage pumping main including labour, tools and tackles and other allied incidental works etc., for Tirupur Water Supply and Sewerage Project. Even though copy of the agreement that the assessee had with Larsen and Toubro Limited, is not produced before this Court, yet, a reading of the order of the first Appellate Authority shows that the agreement was placed for consideration before the first Appellate Authority and in the preceding paragraph we have already extracted the core of the agreement entered into between the assessee and Larsen and Toubro Limited - apart from lack of materials which support the order of reassessment, we further find from the order of the Tribunal, that practically it had agreed with the findings of the first Appellate Authority on the nature of the contract, however, it fell into error in its reasoning that the sale was completed when the goods were unloaded and delivered to Larsen and Toubro Limited. Such reasoning is contrary to the terms of the agreement which were extracted by the first Appellate Authority in its order, which in the preceding paragraphs, we have also extracted in our order. When the nature of work involved not only manufacture but also laying of pipes thereafterwards, we do not find any ground to accept with the reasoning of the Tribunal that the nature of the contract is one of sale and not of composite nature - Decided in favour of assessee.
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