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2014 (5) TMI 760 - HC - VAT and Sales TaxClaim of Deduction - Whether the tax element charged is part of the consideration or not - Works contract – Contract of Retreading of tyres – Agreement to consolidate price inclusive of tax - Explanation (1-A) to Section 2(r) of the Tamil Nadu General Sales Tax Act, 1959 – Held that:- When the parties to the contract have agreed on a consolidated price inclusive of tax, it is clear that irrespective of how they make up the bill or the accounts, the entire consideration will be the turnover, and in which event, the question of application of Explanation (1-A) to Section 2(r) of the Tamil Nadu General Sales Tax Act, 1959, does not arise - This Court, in the unreported decision in W.P.No.37025 of 2002, by order dated 1.4.2004, clearly held that how an assessee makes up its bill or accounts, would not be of any assistance to the assessee for the purpose of claiming any deduction by the application of Explanation (1-A) to Section 2(r) of the TNGST Act - This Court pointed out that the mere fact that the assessee had given the break-up figure on the back side of the bill for administrative convenience, by itself, would not be a ground for granting the relief. Works contract turnover, hence deemed sale, and the divisibility of the consideration is worked out statutorily as under Section 3-B of the TNGST Act, 1959 - Break-up of the consideration and the tax thereon is shown under various heads in the books of accounts of the assessee - That apart, there is hardly any material to find, on which portion of the consideration, the assessee really collected the tax payable under the Act – It is not agreed that the mere fact of distribution under different heads in the amounts would qualify for deduction under the Act, or for that matter, no tax would be charged – Therefore, no hesitation in confirming the order of the Tribunal - The Tax case Appeals stand dismissed – Decided against assessee.
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