9911796707
TMI Blog2012 (7) TMI 856X X X X Extracts X X X X X X X X Extracts X X X X ..... ed company registered under the Karnataka Sales Tax Act and Central Sales Tax Act. The assessee is engaged in screen printing of designs on plain glazed tiles at its factory located in KIADB Industrial Area, Hosakote. The assessee-company carried out the work of screen printing of designs on plain glazed tiles for customers stationed both inside and outside the State. In the annual returns of the company in form No. 4 for the assessment year ending March 31, 2002 it declared the gross and taxable contract receipts of the assessee-company under the KST Act at Rs. 78,31,144 and at Rs. 77,87,577 and that under the CST Act at Rs. 3,23,86,858 and at Rs. NIL, respectively. The assessee-company has opted for payment of tax by way of composition in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e customers stationed outside the State. This according to the assessing authority is improper. Therefore the claim for exemption was disallowed and the entire gross receipts by the assessee-company during the year were proposed to be subjected to tax under section 17(6) of the Act. The customers stationed outside the State have sent their goods (plain glazed tiles) to the assessee-company for carrying out screen printing of design on these plain glazed tiles at the factory of the assessee-company in Hosakote. During the execution of the work (screen printing of designs on plain glazed tiles) goods design gets transferred to the contractee. Thus at the time of execution of work the goods of the customers plain glazed tiles were in the State ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he execution of works contract and hence virtually no property passes in the form of the goods or in some other form. Hence it was of the opinion that the contract is a pure labour contract, which is outside the scope of KST Act itself. Even in the case of customers situated outside the State, the tiles are brought by them and even if the design printed on the tiles by way of work executed by the appellant is to be construed as property in goods transferred in the course of works contract, the same property passed is in the course of inter-State trade as contract itself provides for movement of the goods in the course of inter-State trade in which case also, for want of enabling provisions under the CST Act until the amendment was effected ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... contended that the judgment of the Tribunal is contrary to the aforesaid judgment of the apex court and therefore it requires to be set aside. He further contended that the assessee has not produced the account books in support of his contention, that in the case of the impugned demand no sale of goods is involved in the absence of production of such documentary evidence when once the assessee had opted for payment of tax under section 17(6) of the KST Act, the authorities were justified in levying tax on the entire turnover. The Tribunal committed a serious error in interfering the said order. 7. Per contra the learned counsel appearing for the assessee supported the impugned order. 8. From the aforesaid material it is clear that the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gns and it does not amount of sale and therefore section 5B is not attracted, consequently section 17(6) is attracted. Further, it held even for the sake of argument if it amounts to sale, then as admittedly the said tiles are to be sold outside the State of Karnataka CST is attracted excluding KST and therefore section 17(6) is not attracted. 10. In the light of the aforesaid facts, the contention of the State that even in respect of such transaction the assessee is liable to pay tax on the total turnover under section 17(6) of the Act, is without any substance. 11. From the material on record it is clear that the assessee has maintained accounts of works contract and accordingly he has paid composition tax on the total turnover of the w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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