TMI Blog2010 (4) TMI 976X X X X Extracts X X X X X X X X Extracts X X X X ..... e work as a sub-contractor, in my opinion, is liable to pay tax on the turnover. Appeal dismissed. - W.P. (C) No. 3423 of 2004 - - - Dated:- 27-4-2010 - SHAA B.K. RM , J. JUDGMENT:- B.K. SHARMA J. The petitioner is aggrieved by annexure I assessment order dated August 27, 2001 affirmed on revision and appeal vide annexures III and V orders dated July 4, 2002 and December 10, 2003, respectively. As stated in the writ petition, the petitioner had executed 3 (three) sub-contracts worth Rs. 98,12,479 with the principal contractors within Assam and the same were not reflected in the return since according to the petitioners, there was no liability for payment of tax in respect thereof. However, the Superintendent of Taxes, Dh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ional and appellate authority. According to him, the said authorities having not considered the relevant aspects of the matter, the said orders are not sustainable in law. Mr. Joshi submits that the particular turnover being in respect of sub-contracts, the petitioner was not liable to pay any tax. He has placed reliance on two decisions of the apex court in State of Andhra Pradesh v. Larsen Toubro Ltd. reported in [2008] 17 VST 1; [2008] 9 SCC 191 and DLF Industries Limited v. State of Haryana [2000] 120 STC 569 (P H). On the other hand, Mr. R. Dubey, learned standing counsel, finance, upon a reference to the provisions of section 2(9) of the Act and rule 14(1)(c) of the Rules, submits that as per the said provisions, the petitioner i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... over to the turnover of the Larsen Toubro Ltd. The question that was raised as to whether the goods employed by the sub-contractors occurred in the form of a single deemed sale or multiple deemed sales. The apex court answered the principle of law, upon a reference to the decision of the apex court in Builders Association of India v. Union of India [1989] 73 STC 370; [1989] 2 SCC 645 by quoting paragraph 36 of the judgment, which is reproduced below (at page 400 of 73 STC): 36. . . . Ordinarily unless there is a contract to the contrary in the case of a works contract, the property in the goods used in the construction of a building passes to the owner of the land on which the building is constructed, when the goods or materials used ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of contractor , the sub-contractor is also included. Rule 14(1)(c) on determination of taxable turnover in respect of a works contract makes the position clear. The proviso has been quoted above, in terms of which where the contractor carries out work, either in part or full by engaging registered sub-contracts for the execution of the works contract, the turnover relating to the sub-contractors shall be deducted subject to production of proof of payment of tax by such sub-contractor. In this context, Mr. Dubey, learned counsel for the respondents submits that the particular turnover being liable to be assessed for payment of tax, the authorities did not do anything wrong in passing the impugned orders. In paragraph 16 of the dec ..... X X X X Extracts X X X X X X X X Extracts X X X X
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