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2017 (5) TMI 1174 - HC - VAT and Sales TaxComposite works contract - valuation - According to the department, after excluding the earthwork, the remaining part of contract constitutes the works contract, and since labour charges have not been separately appropriated in the books of account, as such, benefit of labour charges to the extent of 30% has been allowed relying upon the provisions of Rule 9(3) of The Uttar Pradesh Value Added Tax Rules, 2008 - Held that: - In absence of any material brought on record to show the basis for such further categorization of work into one constituting labour work, and the other constituting works contract, which also included labour component, the authorities cannot be said to have acted in an unjustified manner in discarding the assessee's claim in that regard - In absence of any material brought on record to the contrary, the finding of the Tribunal that remainder i.e. after excluding the earthwork, entire contract constitutes the works contract and that 30% thereof was liable to be appropriated towards labour charge is based upon correct interpretation of Rule 9(3) and the grievance of assessee in that regard cannot be accepted. Tribunal was justified in treating the quantum of works contract to be ₹ 41,04,40,584/- and appropriating 30% thereof towards labour charges - Appeal dismissed - decided in favor of Revenue.
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