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2019 (2) TMI 924 - HC - VAT and Sales TaxBenefit of Rule 9(1)(e) of the U.P.V.A.T. Rules denied - the goods in question were not specified in the original works contract, though according to the Tribunal, the goods were brought inside the State of U.P. by way of inter-state purchase for execution of the works contract by the assessee. Held that:- There is no dispute as to the fact that the assessee had been awarded and it had executed indivisible works contract. Also, the Tribunal recorded a specific finding that the assessee had made import of the goods only for the purpose of execution of and applied the goods to the works contract, in paragraph nos. 9 and 10 of the impugned order. In face of such finding it had to be accepted, the assessee had imported the goods only for the purpose of execution of the works contract and not for the purpose of any other business, trading or other contract. Merely because there was no privity of contract between the contractee and the actual seller of the goods (from whom the assessee made the purchases), and though such seller was not known/specified at the time of the execution of the works contract document, it would make no difference to the eligibilty to deduction claimed by the assessee under Rule 9(1)(e) of the Rules, on deemed interstate sale arising upon transfer of property in goods involved in the execution of the works contract. On the findings recorded by the Tribunal, the goods in question had been moved from outside the State solely by reason of the pre-existing works contract and those goods had been applied only solely the execution of that works contract. Therefore, the deemed sale of goods arose, only by way of inter-state sale as the movement of goods was occasioned by the prior contract of sale, namely the works contract - Rule 9(1)(e), though worded differently from section 3-F(2)(i) of U.P.Trade Tax Act, 1948, it does not and it cannot be permitted to convey a different meaning. Since in the present case, the Tribunal recorded a specific finding that there pre-existed works contracts between the assessee and the contractees and further the assessee had purchased the goods from outside the State of U.P., only to execute those pre-existing works contracts, in absence of any further finding that such goods had been sourced from before or that they were not applied to the works contract or that there arose two sales, the assessee was clearly entitled to the benefit of deduction contemplated under Rule 9(1)(e) of the Rules. Revision allowed - decided in favor of assessee.
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