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2016 (10) TMI 85 - HC - VAT and Sales TaxWorks contract for pest control at SEZ - sale and supply of goods as per Section 2(13) and 2(23) of the Value Added Tax Act, 2003 - registered in the category of cleaning activity service - taxation of pesticides and chemicals used in the cleaning and pest control activity under the VAT Act - 'sale' under section 2(23) of the Act - whether execution of the works contract for pest control amount to transfer of property in goods and exigible to VAT? - Held that: - this was a contract for carrying out the pest control service which would require special know-how and use of pesticides in recommended measures. The concentration of the pesticides, the amount of usage, the places to be applied and all other relevant aspects would be a matter of considerable technical expertise. The use of the pesticides in the process was wholly incidental. The dominant purpose was to provide a composite pest control and rodent control service. The use of pesticides and chemicals was wholly incidental. There was no intention of sale of goods from the assessee to the company. Similar issue decided in the case of Pest Control India Ltd. v. Union of India and others [1989 (9) TMI 356 - PATNA HIGH COURT]. NO transfer of property in goods involved - No VAT liability - appeal dismissed - decided against Revenue.
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