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2016 (7) TMI 588 - HC - VAT and Sales TaxClassification - Levy of vat on goods used in execution of works contract - manufacturer of construction equipment - The assessee also re-sells machines used in execution of works contract after purchasing the same in case of inter-state sale. - GVAT - Central question is whether such goods would fall under entry 35 pertaining to “machinery including parts and accessories thereof used in the execution of works contract” and invited tax at the rate of 4% and additional rate of 1% or the goods would fall under residuary entry inviting tax at higher rate. Held that:- Entry 35, we may recall, pertains to machinery including parts and accessories thereof used in the execution of the works contract. Admittedly, there is no separate entry for motor vehicles. Therefore, when a question arises where certain equipment is a machinery which is used in the execution of the works contract, the fact that it also happens to be a motor vehicle, would be wholly insignificant. In other words, if an equipment satisfies description of being a machinery used in execution of works contract, the fact that it also happens to be a motor vehicle, would not change this fundamental feature which would be sufficient to bring the equipment within the purview of entry 35. In absence of any specific entry pertaining to motor vehicle, merely because a certain equipment satisfies description of being a motor vehicle, in addition to being a machinery used in execution of works contract, cannot carry it to the residuary clause. Prior to 15.2.2010, any construction equipment which was a machinery used for execution of works contract even if it happened to be a vehicle would fall within entry 35. - Decided in favor of assessee.
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