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2018 (12) TMI 1356 - HC - VAT and Sales TaxComposition Scheme - APGST Act - whether the assessing authority could have levied tax on the tax component of the works executed by the petitioner? - Held that:- It is no doubt true that the amended Section 4(7)(b) of the Act enables every dealer executing works contract, in lieu of the amount of tax payable by him under Section 4(7)(a) of the Act, to opt to pay by way of composition at the rate of 5% of the total amount received or receivable by him. If the legislature had stopped there, the revenue may have been justified in contending that, since the total amount received or receivable by a dealer would include the tax levied on the total consideration, they were justified in levying tax on the total amount received or receivable which includes the tax component also. Since the tax which can be levied under Section 4(7)(b) of the Act is on the total amount received or receivable by the dealer towards execution of the works contract, it is only on the total value of the works contract executed by the dealer, could tax have been levied. The matter is remanded to the assessing authority who shall, after giving the petitioner a reasonable opportunity of being heard, examine whether VAT was levied on the VAT component of the total amount received or receivable by the petitioner in the execution of the works contract - petition allowed by way of remand.
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