TMI Blog2014 (5) TMI 136X X X X Extracts X X X X X X X X Extracts X X X X ..... tly so, in our opinion, that the road-side metal crash barriers are integral part of the road. The Tribunal also held that installation of such barriers was in the nature of a civil work. The iron and metal barriers would have to be installed with cement-concrete work. The installation of any such barrier would require laying of cement-concrete foundation. It was, therefore, held that installation of such barriers is basically in the nature of civil work of buildings which, in turn, is a part of construction of a road. Since the rate of duty of 2% is extendable to the constructions like buildings, bridges or roads, we see no reason to interfere - Decided against Revenue. - SCA NO. 3495 of 2014 With SCA NO.3652 of 2014 - - - Dated:- 7-3- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The Commissioner questioned the assessee about discharging tax liability at the rate of 2%, prima facie holding that the rate of tax leviable would be 12%. The assessee pointed out that it had undertaken the works contract for supply and fixing of 'metal tri beam crash barrier', which are in the nature of iron railings fitted on both the sides of the road for prevention of accidents. 5. The Commissioner in his order dated May 15, 2008 rejected the assessee's contention of levying tax at the rate of 2%. He thereupon approached the VAT Tribunal. The Tribunal by the impugned judgment allowed the Revision Petition. Hence, this petition before the High Court. In the impugned order, the Tribunal held and observed as under: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r does not get benefited, he would not obtain permission to pay composite or as the case may be lump sum tax. It was stated by the learned revisional authority that the rate of tax was not specified in Form-35B under which the permission to pay composite tax was granted. But, as we have stated earlier, the dealer would not chose to select composition, if he is not benefited in payment of tax. The Form 35B does not have the space for prescribing the rate of tax. Further as stated earlier, the applicant was to execute his works contracts on the highways. A highway needs certain protection for the vehicles and pedestrians, particularly, for the vehicular traffic. The 4 vehicles may skid on highways accidentally and to avoid such accidents, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r the applicant. The argument that the definition of the roads as submitted by the LA for the applicant has nothing to do with the present issue, cannot sustain as the issue was what is meant by civil works. If the roads are to be defined for the purpose of this revision, the definition has to be taken into consideration. It is, therefore, necessary to consider the definition of Highway given under The Control of National Highways (Land And Traffic) Act, 2002 Sub-section (c) of Section 2 of this Act defines Highway which means a National Highway declared as such under Section 2 of the National Highway Act, 1956 (48 of 1956) and includes any expressway or express highway vested in the Central Government whether surfaced or unsurfaced ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r the property in goods does not passed to the contractor at any point of time. The subcontractor is only an agent of the contractor and the property in goods passes directly from the sub-contractor to the contractee, and, there could be only one sale recognized by the legal fiction created under Article 366 (29A). It is, further, held that to hold that there are two taxable events in such a transaction, enabling the State to levy and collect tax both from the sub-contractor and the contractor would be violative of Article 14, also for the reason that wherever a contractor executes a works contract himself without employing the sub-contractor executes a works contract himself withouts employing the sub-contractor, the deemed sale of goods i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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