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2024 (1) TMI 712 - HC - VAT and Sales TaxLevy of penalty under Section 5B read with Section 7-A(2) of the APGST Act, 1957 - utilization of cement in the execution of the works contract - violation of declaration under the proviso to sub-section 1 - demand on the ground that, since the cement pipes manufactured by the Revenue was predominantly used for execution of the works contract awarded to the assessee themselves, he was not entitled for the purchase of cement at a reduced price - HELD THAT:- The finding of facts by the Tribunal cannot under any stretch of imagination be held to be contrary to law or contrary to the materials which have been taken into consideration for the purpose of reaching to the said conclusion. A similar view was taken by this Bench while deciding Tax Revision Case No.8 of 2008 and batch on 09.10.2023 [2023 (10) TMI 723 - TELANGANA HIGH COURT], wherein in paragraph No.19, this Bench had taken a similar stand while dismissing the Tax Revision Cases filed by the assessee where it was held that A plain reading of the aforesaid proviso would clearly give an indication that when a purchase of cement is made by a manufacturer of a finished good like asbestos sheets, pipes, paint manufacturers, hallow bricks, it would be eligible for purchase of cement at a concessional rate. The petitioner was not a manufacturer of any finished goods like the ones mentioned in the preceding paragraph. Thus, no strong case has been made by the Revenue calling for interference with the order passed by the Tribunal - The view of the Tribunal is also based upon the finding of the High Court of Andhra Pradesh in the case of B. SEENAIAH AND CO. VERSUS COMMERCIAL TAX OFFICER, KHAIRATABAD CIRCLE, HYDERABAD AND OTHERS [2001 (6) TMI 794 - ANDHRA PRADESH HIGH COURT] wherein the High Court of Andhra Pradesh dealing with the phrase ‘deemed sale’ has held While completing the execution of the works contract the property in the goods passed to the contractee from the contractor, the petitioner, at the time they were incorporated in the laying of the road. Therefore, there was a clear transfer of property in goods, while completing the works contract which would result in sale or deemed sale of goods, liable to tax. There are no merits in the contentions and submissions made by the Revenue while assailing the order of the Tribunal which is under challenge in the present three Tax Revision Cases - The three Tax Revision Cases therefore stands dismissed.
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