Home Case Index All Cases VAT and Sales Tax VAT and Sales Tax + HC VAT and Sales Tax - 2017 (4) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (4) TMI 578 - HC - VAT and Sales TaxValidity of assessment order - lack of jurisdiction of the 3rd respondent to levy tax - violation of principles of natural justice - transfer of the right to use the rigs or not - contracts entered into within the State of Andhra Pradesh. Appellant claim that that the offshore drilling contracts were neither entered into nor executed within the State of Andhra Pradesh and hence the authorities under the A.P. VAT Act have no jurisdiction to assess such a contract to value added tax under the provisions of the A.P. VAT Act - also, it is their claim that the finding that there was a transfer of the right to use the rigs in terms of Section 4(8) of the Act was completely perverse. Whether the contracts entered into by the petitioner with the contractor of ONGC, could be taken to have been either entered into or executed/performed within the State of Andhra Pradesh, so as to confer jurisdiction upon the authorities under the A.P. VAT Act, 2005, to proceed against the petitioner? - Held that: - A dealer entrusted with the task of carrying out drilling operations in the west-coast on the Arabian Sea, when subjected to service tax liability by the concerned authorities, cannot be said to have wrongfully deprived the State of its revenue under the A.P. VAT Act, 2005. Therefore, all the reasons contained in the impugned order, assuming jurisdiction on the ground that the agreements should be presumed to have been entered into in the State of Andhra Pradesh, are wholly unsustainable in law and are completely perverse - issue of jurisdiction answered in favor of the writ petitioner. Whether in the facts and circumstances of the case, it could be deemed that there was a transfer of the right to use the rigs? - Held that: - the equipment and technical personnel provided by the petitioner to the main contractor are on charter hire, where the complete control was retained by the petitioner. All responsibilities were placed only upon the petitioner by the main contractor himself - transfer of the right to use not taking place. Appeal allowed - decided in favor of appellant.
|