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TMI Blog2014 (5) TMI 457X X X X Extracts X X X X X X X X Extracts X X X X ..... the mosaic tiles" is not works contract since there is "manufacture" involved, ignoring the definition of "works contract" u/s 2(u) of the Tamil Nadu General Sales Tax Act, 1959, which includes any agreement for carrying out for cash, deferred payment or other valuable consideration, the building, construction, "manufacture", of any moveable or immoveable property and the conclusion of the assessing officer and first appellate authority? 2. Whether the petitioner is entitled for the deduction u/s 3B(2)(b) of the Tamilnadu General Sales Tax Act, 1959, in view of the admitted fact that the petitioner had purchased all the goods locally from the registered dealers inside the State of Tamilnadu and also "used" in the execution of works contra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , granted the exemption. Insofar as the other goods, he refused to extend the exemption benefit. As to the refusal of the benefit other than chips, the assessee preferred appeals to the Appellate Tribunal. Challenging the grant of exemption to the chips as well, the Revenue also preferred appeals. By the common impugned order, the Tribunal found that the transactions are in the nature of sale and is not works contract and allowed all the appeals in favour of the Revenue. This order has given rise to the cause for the present Tax Case Revisions. 3. Mr.Sundareswaran, learned counsel had extensively argued before us by drawing the relevant provisions of the Act, particularly, Section 3B, Section 2(g)(vi), 2(n)(ii) of the Tamil Nadu General Sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... into another distinct commercial commodity after purchase by the dealer and when it is used in the execution of the works contract, since the two goods, viz., the commodity purchased by the dealer and the commodity used in the execution of works contract are distinct and different commercial commodities falling under two different sub-items of an entry under section 14 of the Central Sales Tax Act, the question of levying sales tax at more than one stage on the same commodity does not arise. In other words, when the goods used by the dealer in the execution of the works contract is commercially different from the goods purchased by the dealer, falling under different sub-items of an entry under section 14 of the Central Sales Tax Act, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... jected the arguments that notwithstanding the change in the form of the goods, the changed form in itself being a taxable commercial commodity under a different head, such change should be ignored and the deduction allowed to be claimed by regarding the goods which had been bought by the dealer executing the works contract as the goods used in carrying out the works contract. 11. Article 366(29-A) was not enacted to confer largerbenefits on the persons engaged in carrying out works contract who transferred the properties and the goods used in such contract to the other party to the contract. If a person who is engaged for example in the manufacture of rolling shutters, buys iron and steel for the purpose of manufacture, after paying tax on ..... X X X X Extracts X X X X X X X X Extracts X X X X
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