TMI Blog2005 (9) TMI 530X X X X Extracts X X X X X X X X Extracts X X X X ..... requirement, the required raw material for the purpose of manufacturing the said packing material was purchased by the concerned suppliers on their own; that these manufacturers had even paid sales tax and excise duty on the material supplied to the assessee-company, wherever applicable; that thus, the ownership in the said material was entirely with the concerned manufacturers till its supply to the assessee-company and the contract between the assessee-company and these manufacturers was for supply of material and not for carrying out any particular work as envisaged in section 194C; that it was a clear case of sale of goods by the suppliers to the assessee-company, which was evident from the fact that sales tax as well as excise duty wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that event, obviously, no penalty was leviable. We hold accordingly. The grievance of the assessee is, hence, justified and is accepted. In the result, both the appeals of the assessee are allowed. - S.C. TIWARI AND A.D. JAIN, JJ. V.P. Gupta and Basant Kumar for the Appellant. Rajeev Mehrotra for the Respondent. ORDER A.D. Jain, Judicial Member. - In this appeal for assessment year 1999-2000, the assessee has raised the following effective grounds : "1. That the learned CIT(A) erred in rejecting the claim of the assessee that the transaction of purchase of the printed cartons even with the assessee s specification, was not by way of works contract, but was covered by the contract for sale of goods. Thus, the assessee s case has wrongly b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppeal by virtue of the impugned order dated 23-11-2001, the assessee is in further appeal before us. 5. The learned Commissioner (Appeals) has held, inter alia , that the corrugated boxes purchased by the assessee were made on the specific orders by the assessee, including specific sizes, strength and printing of name of the products, name of the company and other related material on the sides of the boxes; that if these boxes were rejected by the assessee, they could not be used by any other manufacturer, even on the same line; that it was, therefore, not a case of simple purchase of corrugated boxes from the open market; that the CBDT instruction/circular No. 681 dated 8-3-1994 relied on by the assessee as clarifying the provisions of sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... packing material was manufactured by the suppliers as per the specifications given by the assessee-company and even some printing was also done as per the assessee s requirement, the required raw material for the purpose of manufacturing the said packing material was purchased by the concerned suppliers on their own; that these manufacturers had even paid sales tax and excise duty on the material supplied to the assessee-company, wherever applicable; that thus, the ownership in the said material was entirely with the concerned manufacturers till its supply to the assessee-company and the contract between the assessee-company and these manufacturers was for supply of material and not for carrying out any particular work as envisaged in sect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee was not liable to deduct TDS. Moreover, it has not been denied that the taxes have since been paid, amounting to Rs. 1,31,270. This amount, as per the learned counsel, is refundable. In these facts, section 201(1) of the Act is not attracted. 11. Evidently, no tax can be collected twice over. All the parties have paid up, according to the learned counsel for the assessee. If it is so, to that extent, the amount is to be refunded. Credit of TDS was not allowed to these parties. The full amount was collected. All in all, this matter of refund is not before us. It has to be sorted out in appropriate proceedings. 12. On merits too, the very fact that the above discussed decisions have been given on the issue, evinces that the matter has ..... X X X X Extracts X X X X X X X X Extracts X X X X
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