TMI Blog2011 (11) TMI 592X X X X Extracts X X X X X X X X Extracts X X X X ..... the Respondent : Smt. S. Sujatha, Additional Government Advocate, The judgment of the court was delivered by N. KUMAR J.- The assessee has preferred this appeal against the order passed by the Additional Commissioner of Commercial Taxes under section 22A(1) of the Karnataka Sales Tax Act, 1957 setting aside the order passed by the assessing authority and levying sales tax on the entire turnover. 2. The assessee is engaged in the business activity of fabrication and erection of structural works. The assessee filed his annual return for the year 1999-2000 on April 29, 2000. In the said return he showed the total consideration received as ₹ 37,62,208.51. The assessee claimed exemption on the turnover of ₹ 23,71,721.52 u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on sought for by the assessee. It is this order which has been revised by the Additional Commissioner of Commercial Taxes by virtue of power conferred on him under section 22A(1) of the Act on the ground that the said order is erroneous as well as prejudicial to the interest of the Revenue. 3. What is weighed by the revisional authority is that total turnover which the assessee declared in his return was treated as the total consideration towards execution of works contract and therefore, he held that the deduction allowed is against law causing loss to the Revenue. It is against the said order present appeal is filed. 4. The learned counsel for the assessee assailing the impugned order contended that no doubt it is true in the declar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... owing labour charges and the value of the goods sold and he had to pay sales tax on the value of the goods sold. It is to overcome such difficulties he has opted for composition scheme under section 17(6). The tax payable under section 17(6) is on the total consideration of the works contract which necessarily includes labour charges. The assessee would not be entitled to any exemption in respect of that labour charges which is included in the works contract when once he opts for composition of tax under section 17(6). However, if he enters into purely labour contract where no aspect of sale is involved and consideration received in the labour contract is outside the claim of Sales Tax Act, no portion of that labour charges is liable to tax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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