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2014 (4) TMI 256 - KARNATAKA HIGH COURTValuation of Works Countract - Claim of Deductible expenses – Absence of records of expenses – Applicability of KVAT ACT, 2003 Rules – Held that:- The provisions of the Act clearly disclose that if the expenditure incurred for executing the work contract is ascertainable from the books of account maintained by the dealer, then he is eligible for deduction as per the expenditure he has incurred and if it is not ascertainable, then the provision of Rule 3(2)(m) has to be invoked - When the bills and vouchers have not been produced before the Assessing Authority, the question of verifying the said bills and vouchers does not arise. In the absence of necessary records, the expenditure incurred for the work contract has to be assessed invoking Rule 3(2)(m) of the KVAT Rules - Since the work contract carried on by the appellant do not fall under any type of the contracts between Entries 1 to 13, invoking clause Entry 14 of the table which is “any other work contract”, the Revisional Authority allowed the deduction to an extent of 25% as per clause 3 of the said table - No infirmity or irregularity in the said order - Hence, appeals are dismissed – Decided against appellant.
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