Home Case Index All Cases VAT and Sales Tax VAT and Sales Tax + HC VAT and Sales Tax - 2015 (11) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (11) TMI 1427 - HC - VAT and Sales TaxWorks contract activity or pure sales activity - printing annual report as per the specification - Exemption on the sales turnover - penalty under Section 12(3) of the Tamil Nadu General Sales Tax Act - Held that:- Assessee undertook the work of printing annual reports as per the instructions of the customers. The items were printed for their exclusive use on works contract basis. When the predominant intention is for printing annual report as per the specification given by the customer, it is, therefore, in the nature of works contract. Where the finished product supplied to a particular customer is not a commercial commodity in the sense that it cannot be sold in the market to any other person, the transaction is only a works contract. - work executed by the assessee related to printing of materials and such printed materials are meant for particular customers, who placed orders and it cannot be sold in the open market like any other goods. Going by the principle laid down in the above-said decision of the Apex Court [1988 (1) TMI 329 - SUPREME COURT OF INDIA], which was followed by this Court in the subsequent decisions, we have no hesitation in accepting the case of the assessee that the transaction in question does not call for any liabililty under the Act. As pointed out by the Apex Court, the mere fact that in the execution of the contract for work, the paper owned by the assessee stands transferred to the contractee incidentally would not lead to the inference that the transaction is only a sale and not a works contract. - Decided in favour of assessee.
|