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2018 (12) TMI 1885 - HC - VAT and Sales TaxValidity of reassessment proceedings - change of opinion - levy of purchase tax - penalty u/s 27(3) of the T.N.V.A.T. Act - Works Contract - HELD THAT:- The petitioners herein are works contractors. The purchase tax under Section 12 of the T.N.V.A.T. Act has been levied on them. It has been held in the decision of THE STATE OF TAMIL NADU VERSUS EAST COAST CONSTRUCTIONS AND INDUSTRIES [1985 (2) TMI 239 - MADRAS HIGH COURT] that where the goods have been used in the construction of buildings, such user cannot be said to be a disposal of goods as contemplated by Clause (b) of Section 7-A(1) of the Tamil Nadu General Sales Tax Act, 1959. The said provision is in pari materia with Clause (b) of Section 12 of the T.N.V.A.T. Act. The transaction in which the petitioners are engaged is said to constitute deemed sales. Therefore, when the petitioners have already been visited with tax on that count, they cannot also be saddled with levy of purchase tax - petition allowed.
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