2023 (1) TMI 338 - HC - CST, VAT & Sales Tax

Taxable Turnover - works contract - earth work - deduction of 30% as labour charges - violation of provisions of Sub-Section 3, 7 and 9 of Section 3 of the Uttarakhand Value Added Tax Act, 2005 or not - HELD THAT:- A plain reading of sub-section 7, especially Clause (ii) therein of Section 3 which deals with the case involving execution of work contract, taxes shall be levied when the taxable quantum Rs. 5,00,000/- onwards. It is admitted in this case that the contractor was paid of Rs. 1,11,930/- towards the work executed of Rs. 4,61,670/- being not liable to be included in the turnover of the Assessee – revisionist while calculating the taxable quantum. The Assessee – revisionist is not liable to pay any tax on the same, especially in view of the fact that neither the Assessing Authority nor the First Appellate Court nor the Second Appellate Court has held that Assessee – revisionist has income from other sources for the assessment year, therefore, the imposition of tax of Rs. 1,11,930/- is illegal, hence, to be set-aside.

The revision is allowed. The impugned judgments are set-aside, hence, the Assessee – revisionist is not liable to pay any sales/commercial tax for the period in consideration.