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2016 (11) TMI 898 - HC - VAT and Sales TaxWorks contract - benefit of deduction - Site Establishment Expenses - Consumables - Maintenance Charges in respect of Plant & Machinery - Material covered by section 3/ 4/5 of the Central Sales Tax Act - Held that: - whether the articles had been transferred in the execution of the works contract could not be left to mere supposition and it was the obligation of the assessing authority as well as the first appellate authority to record and arrive at a concrete conclusion as to whether there had in fact been a transfer of property in those goods in the execution of the works contract or not? Held that: - on mere presumptions, the assessing authority could not be permitted to bring to tax the articles which had been transferred in the execution of the works contract. Surprisingly however, after having held that the assessing authority had clearly erred in proceeding on a mere assumption that 60% of the value of the articles alone had been utilized in the execution of works contract it has proceeded to hold that 75% of the value of the articles in question were liable to be apportioned towards the temporary establishment whereas 25% of the value of the articles in question were liable to be attributed to the execution of the works contract. Insofar as the benefit of articles which are covered by Sections 3,4 and 5 of the Central Sales Tax Act are concerned, it has proceeded to hold that no material was placed which would indicate that these goods were brought from outside the State exclusively for the purposes of execution of the works contract. Both these findings in the opinion of this Court, are wholly conjectural and based entirely on surmises - this Court is of the opinion that the facts of the case would merit a remand of the matter to the Tribunal which shall now proceeded to consider the matter afresh - revision allowed - matter remanded.
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