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2022 (2) TMI 556 - HC - VAT and Sales TaxLevy of tax - works contract - receipts by the petitioner from their customers, represent the sale value of mosaic tiles or the works contract executed by the petitioner for laying and polishing the mosaic tiles, which are outside the purview of the TNGST Act, 1959, as it existed during the assessment year 1985-86 - HELD THAT:- Admittedly, the petitioner is a mosaic tiles works contractor and the dispute pertains to the assessment year 1985-86. It is also not in dispute that tax is levied on the sale of goods involved in works contract only with effect from 26.06.1986. Thus, it may be relevant to note that if the receipts were to constitute works contract, then, there may not be any liability to tax under TNGST Act, 1959, inasmuch as works contract which was deemed to be a sale pursuant to the 46th Amendment to the Constitution of India, was made liable to tax under TNGST Act, 1959, by introduction of Section 3B of the TNGST Act, 1959, which created a charge on works contract with effect from 26.06.1986. All the lower authorities have treated the receipts to be relating to regular/conventional sale of mosaic tiles on the premise that the petitioner had not come forward with any material whatsoever in support of their stand that the receipts represented works contract, including copies of contract entered into between the petitioner and its customers; and accordingly, they have held that the said receipts are liable to tax under the TNGST Act, 1959. In the absence of any supportive document produced on the side of the petitioner, we do not find any reason to differ with the conclusion so arrived at or interfere with the findings so rendered by the Tribunal. The writ petition is liable to be dismissed, as there is no infirmity or perversity in the order of the Tribunal, warranting interference by this court - Petition dismissed.
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