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2017 (8) TMI 676 - ALLAHABAD HIGH COURTLevy of tax - works contract - Section 3-F(2)(b) of the Act - Whether the goods brought from outside the State of U.P. and used in the execution of works contract can be subjected to tax despite the fact that the turnover pertaining to the works contract is exempted from payment of tax in view of Section 3-F(2)(b) of the Act read with Section 3 of the Central Sales Tax Act, 1956? - Held that: - Section 3-F(2)(b) clearly exempts from the applicability of trade tax the amount representing sales value of goods covered by Section 3, 4 and 5 of the Central Sales Tax Act, 1956. In order to enable the revisionist to claim benefit of the provision, it would have to be shown that the amount representing the sales value of goods brought from outside the State of U.P. was for the works contract - The assessee appears to have proceeded on the premise that as for the previous years, in similar circumstances, the import of goods for works contract was accepted by the department, as such, the facts need not be established all over again. An opportunity to establish such facts ought to have been given more specifically, if the department intended to take a view different from the previous years. In the opinion of this Court, the Tribunal ought to have given an opportunity if assessee's case was being non-suited on facts - The Tribunal shall examine that aspect of the matter afresh. Whether the learned Tribunal was justified in levying tax on road marking plastic powder used in the marking of central line on the National Highways/Roads as Paint being an unclassified items, since it is a pigment and used in the execution off works contract? - Held that: - the Tribunal has observed that even if such material is not treated to be paint, yet it would be treated as an unclassified item. The finding in that regard of the Tribunal appears to be vague. Specific case of the assessee was of import of thermo plastic materials, used for the purposes of laying lines on the highways. The process had also been substantiated before the Tribunal. Tribunal, therefore, was required to return a finding as to whether the material utilized for the contract was paint or thermo plastic road marking material. The Tribunal appears to have lost sight of the fact that assessing authority had acknowledged the product as thermo plastic road marking material. Appeal allowed by way of remand.
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