TMI Blog1994 (9) TMI 327X X X X Extracts X X X X X X X X Extracts X X X X ..... Gas Commission for constructing the pipeline and temporary cathodic protection from Oil and Natural Gas Commission (ONGC) gas gathering station at Gamenvala to Rajasthan State Electricity Board, Ramgarh, contemplates that all material will be supplied by the awarder and the petitioner has to use only consumables and as such no tax is to be deducted. It is also submitted that the provisions of section 5(3) of the Rajasthan Sales Tax Act, 1954 and rule 29(2)(i) of the Rajasthan Sales Tax Rules, 1955, have been declared as unconstitutional by the apex Court and therefore the respondents have no jurisdiction to deduct or levy the tax. 3.. I have considered over the matter. By a notification dated April 28, 1993, clause (a) of sub-rule (2) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it has been provided that in case of works contract the taxable turnover of the goods (whether as goods or in some other form) involved in the execution of the works shall be subject to tax in accordance with the provisions of subsection (1). Earlier sub-section (3) of section 5 read as under"Notwithstanding anything contained in this Act, in the case of a works contract, the turnover of such contract shall be subjected to tax: Provided that such deductions, as may be prescribed, may be allowed to a contractor while determining his tax liability." The above provision was declared to be unconstitutional in the case of Gannon Dunkerley Co. [1993] 88 STC 204 (SC) and in order to overcome the problem the existing sub-section (3) of sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ommodating a particular customer or a purchaser a dealer obtains goods from another dealer and immediately disposes of the same to the said customer or purchaser, the sale in respect of such goods shall be included in the turnover of the latter dealer alone." Sub-rule (2) of rule 29 was amended on April 4, 1994 and it was provided that the value of goods transferred in the execution of works contract, whether as goods or in some other form, which has already suffered tax, it is not liable to tax under the Act. By reading of provisions of section 2(t) read with rule 29(2)(i) it is clear that in respect of works contract the turnover has to be determined by excluding the goods used in the execution of works contract which have already suffe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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