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2013 (12) TMI 501 - HC - VAT and Sales TaxTransaction treated as outright sale – Supply and laying mosaic to the prescription of the purchaser – Held that:- The assessee has not used in the execution of any works contract, the goods which were purchased by him in the same form - the question of granting exemption under Section 3B(2)(b) of the TNGST Act, does not arise - There was no justifiable grounds to accept the plea of the assessee that they are entitled for exemption under Section 3B(2)(b) of the TNGST Act - the contract is one for manufacture of mosaic tiles and laying of tiles in the business place of the dealer, which is an inevitable works contract, the Assessing Officer in his point of assessment, proposed adoption of 50% for manufacturing process and the other 50% for laying and polishing, there being no separate details for payment of such wages towards manufacturing of mosaic tiles and for laying and polishing in the sites of his customers. Imposition of Penalty u/s 12(5)(iii) of the TNGST Act - Relying upon Apparels and Handloom Exporters Association and Ors., vs. State of Tamil Nadu and Ors. [2001 (9) TMI 1114 - MADRAS HIGH COURT] - The Assessing Officer to redo the deduction particularly with reference to Labour Charges alone adopting 30% as relatable to labour charges liable to be deducted in the books of accounts - Apart from this, the question of penalty levied on the assessee also needs to be reassessed - the Appellate Assistant Commissioner confirmed the levy of penalty under Section 12(5)(iii) of the TNGST Act, the Tribunal reduced the levy of penalty at 50% as against the 150% - Decided partly in favour of Petitioner.
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