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M/s Keti Construction (I) Ltd. Versus Commercial Taxes Officer

2015 (5) TMI 171 - RAJASTHAN HIGH COURT

Exemption on payment of exemption fees @ 1.5% - Assessing Officer (AO) was of the view that looking to the nature of the contract i.e. installation of plant & machinery including PSPO water treatment plants, laying of pipe line with material, it falls under the item/category 3 of the above mentioned notification and as such, is liable to charge exemption fees @ 2.25% - Held that:- It is essentially a finding of fact recorded by the lower authorities and the Tax Board, after appreciation of evide .....

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y undertaken by the petitioner-assessee, he has been able to segregate for the amount incurred by it on different activities separately. - On reading of the work assigned to the petitioner, and the Notification, in my view, there was composite agreement of contract and the major activity being of laying of pipeline with material, water treatment plant etc., then it would certainly be falling in item/category No.3 of the notification and all the three authorities in unison have come to a finding .....

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Mr Archit Bohra, Counsel ORDER 1. Instant revision petition by the petitioner-assessee is directed against the order dt.16/04/2012 passed by Rajasthan Tax Board in Appeal No.1007/2010/Kota. It relates to the Assessment Year 2009-10. 2. Brief facts of the case are that the petitioner-assessee is a contractor and was awarded works contract by the Rajasthan Urban Sector Development Investment Program (RUIDP) for Sewerage Treatment Plant (STP) regarding design, construction, supply, erection, testi .....

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his effect. However, the Assessing Officer (AO) was of the view that looking to the nature of the contract i.e. installation of plant & machinery including PSPO water treatment plants, laying of pipe line with material, it falls under the item/category 3 of the above mentioned notification and as such, is liable to charge exemption fees @ 2.25% and accordingly passed the assessment order. 3. The said assessment order was challenged in appeal before the Deputy Commissioner (Appeals) [DC(A)], .....

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see which is assailed in this petition. 5. Ld. Counsel for the petitioner-assessee drew attention of this Court and contended that on perusal of the terms of the contract, it is clear that the assessee was awarded contract for a period of five years and the scope of work under the contract namely; setting up of sewerage system, plant & machinery and maintenance for five years and drew attention of the Court to the terms and contract and vehemently contended that all the three authorities hav .....

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or the petitioner-assessee relied upon the judgments rendered in the case of Associated Cement Companies Limited Vs. State of Karnataka: [2007] 7 VST 691 (Karn); Bharat Vijay Mills Ltd. Vs. Commissioner of Commercial Taxes: 1992 (85) STC 23. 6. Per-contra, ld. counsel for the respondent-Revenue contended that the terms of the contract clearly envisage that it is nothing but water treatment plant with some other activities which are part of water treatment plant and therefore, the AO as well as b .....

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in my view, it is essentially a finding of fact recorded by the lower authorities and the Tax Board, after appreciation of evidence, material on record and looking to the terms of the works contract, has clearly come to a definite finding of fact that the work assigned to the petitioner-assessee cannot be segregated and its main activity was construction/establishing plant & machinery of the sewerage treatment plant and that apart laying down pipelines with material which falls under the ite .....

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