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2019 (9) TMI 105 - HC - VAT and Sales TaxLevy of sales tax / VAT - Lease rent - sale of boilers in running condition and embedded to earth - works contract - purchase of bricks and 'gitti' - HELD THAT:- Referring to the definition of the word 'goods' under Section 2(d) of the Act, this Court had reasoned "the phrase which under the contract of sale are agreed to be severed" refers to lessee or the licensee, as the case may be, to severe the "goods" attached to, or fastened to any thing permanently attached to, the earth - the reasoning given by the Tribunal cannot be sustained. However, the issue of taxability would survive to be considered by the Tribunal in terms of the other clauses in the agreement i.e. whether the turbo alternators leased out by the assessee could be severed by the lessee. If such a clause is absent in the agreement, the assessee cannot be subjected to tax as in that case, there would be no movable goods but only immovable property that had been leased out. - Matter restored before tribunal. Levy of tax - sale of boilers in running condition and embedded to earth - HELD THAT:- The Tribunal has proceeded on the reasoning that since the equipment was sold not with the land or earth to which it was attached, therefore, only movable goods had been sold - it would have to be seen whether, under the sale deed, the purchaser had right to remove the boiler equipment. If such right is found to be existing, the goods may be treated as movable subject to further objections that may arise at the instance of the assessee. However, if that right is found not existing under the sale deed, the goods would remain immovable property, irrespective of the title over the land to which such boiler may be found attached in view of the definition of "goods" u/s. 2(d) of the Act - The matter is thus remitted to the Tribunal to pass a fresh order in accordance with law, as expeditiously as possible, preferably within a period of six months from the date of production of a certified copy of this order. Levy of tax - turnover amounting to ₹ 22,25,388/- received for execution of works contract U/s 3AAAA of the Act - HELD THAT:- It is undisputed that, in the relevant year, the commodities bricks and ballast 'gitti' were taxable at the point of sale by the manufacturer or the importer. Therefore to that extent, the liability could not arise on purchase of bricks and 'gitti'. Revision disposed off.
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