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2019 (8) TMI 376 - HC - VAT and Sales TaxWorks contract - Benefit of Sections 3, 4 and 5 of the Central Sales Tax Act, 1956 - purchase of cement and bitumen for the purposes of execution of works contract awarded to the assessee by National Highways Authority of India - Section 3-F(2)(b) of the U.P. Trade Tax Act, 1948 - HELD THAT:- Under Section 3-F(2)(b)(i) read with Section 3-F(1)(b) of the U.P. Act, it is the statutory mandate that the amount representing the sales value of goods covered by Sections 3, 4 and 5 of the Central Act have to be necessarily excluded from the value of the works contract for the purposes of subjecting the same to assessment under the U.P. Act - the benefit that was being claimed by the assessee was not by way of exemption but a claim depending on the jurisdictional issue i.e. the state legislature did not have the legislative competence to impose tax on goods being imported to the State solely for the purpose of execution of the works contract. Once it is established by whatever evidence, that the movement of goods was occasioned from outside the State solely for the purposes of execution of the works contract, the provision of Section 3-F(2)(b)(i) of the U.P. Act would come into play on it's own. No further condition as contemplated by the Tribunal exists and, therefore, the assessee could not be required to establish from the terms of the works contract that the individual goods had been specified therein. The plea does not appear to have been considered by the Tribunal to any extent and the Tribunal appears to have rejected the claim on over simplistic and erroneous reasoning that the assessee had not informed NHAI about the goods that were applied to the execution of the works contract - In absence of specific findings being recorded as to whether the movement of goods from outside the State had been occasioned by the pre-existing works contract executed by the assessee, the question law (as framed above) has to be left unanswered at this stage. The matter is remitted to the assessing authority, as suggested by learned counsel for the applicant-assessee, to pass appropriate orders - appeal allowed by way of remand.
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