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2015 (8) TMI 202 - RAJASTHAN HIGH COURT

2015 (8) TMI 202 - RAJASTHAN HIGH COURT - [2016] 87 VST 281 (Raj) - Denial of exemption claim - fixing and providing of Works Profile Safety Barrier - part of road construction activity or not - Assessing Officer came to the conclusion that certificate of exemption though was related to every part of Roads but fixing and providing of Works Profile Safety Barrier could not be said to be relating to roads but these were safety steel barriers and could be used for the other purposes, other than roa .....

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poses of Roads, is unjustified on the part of the AO. When the notification itself says that exemption fee is to be charged @1%, relating to safely work of road, then in my view, it is part and parcel of providing and fixing, may be at Toll Plaza but it is certainly part of a road.

Merely putting concrete, grit, coaltar cannot be said to be a road but in the present day conditions, when Mega Highways are being constructed, as in the present case, which is National Highway No.8, relati .....

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aning and cannot be restricted only to putting of concrete, grit, coal tar etc but it should mean everything relating to road. The expression such as “arising out of“ or “in respect of the” or “in connection with” or “in relation to” or “in consequence of” or “concerning” or “relating to” the contract are of the widest amplitude and content and include even questions as to the existence, validity and effect (scope).

When both the appellate authorities have come to a definite finding o .....

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9;Tax Board') dt.15/11/2003 passed in Appeal No.119/2003 by which the appeal filed by the petitioner-Revenue assailing the order of the Deputy Commissioner (Appeals) (for short, DC(A)') has been dismissed. 2. Instant petition was admitted vide order dt.30/04/2015 on the following substantial questions of law:- 1.Whether in the facts and circumstances of the case, providing and fixing profile-safety steel banker at hazardous location on National Highway No.8 is/was related to the roads or .....

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and fixing profile-safety steel banker and metal crash barrier and access control fencing at hazardous location on National Highway No.8 is/was related to the execution of work relating to roads or not ? 4.Whether in view of Rule 14 of the Sales Tax Rules, the exemption once granted can be withdrawn only on the premise that the same was obtained by fraud or misrepresentation, and not on the ground that the work in question was not covered by exemption so granted ? 3. The brief controversy is th .....

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fixing of Works Profile Safety Barrier at Toll Plaza, NH-8 would entail exemption fee @ 1% with 12% surcharge and the same was required to be paid by the assessee. 4. The Assessing Officer (for short, 'AO') vide order dt. 27/11/2001 came to the conclusion that certificate of exemption though was related to every part of Roads but fixing and providing of Works Profile Safety Barrier could not be said to be relating to roads but these were safety steel barriers and could be used for the o .....

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road and safety measures, therefore, the exemption fee of 1% as was stated in the certificate granted on 09/08/1999 @ 1% and 12% surcharge was held to be just and proper. 7. Mr. Archit Bohra, appearing on behalf of Mr. RB Mathur, counsel for the petitioner submits that the assessee travelled beyond the works contract granted to it, therefore, the AO was justified in holding that the safety steel barriers were not fixed in accordance with the exemption notification and has rightly come to the con .....

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he case of State of Kerala Vs. Thrimathy Contracting Company : 2009(4)KLT 982. 8. On the contrary, Mr. Kasliwal ld. counsel for the respondent-assessee contended that it is a finding of fact by the authorities below that providing and fixing of the Safety Steel Barrier, relate to Toll Plaza and Roads and once a finding of fact has been reached by the authorities below that it is part of fixing in Roads, then the Tax Board rightly came to the said conclusion. He contended that even the AO admits .....

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of developing National Highway No.8 and it was granted contract relating to fixing of W. Profile Safety Barrier at Toll Plaza, National Highway No.8 . The AO, in the last part of the assessment order, has observed that as per notification dt.28/04/1993. Exemption fee @1% was chargeable on the entire work related to Roads. Therefore, when the entire work relating to Roads has been charged @ 1% as per notification dt.28/04/1993, then to say that fixing of W. Profile Safety Barrier was not used for .....

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tar cannot be said to be a road but in the present day conditions, when Mega Highways are being constructed, as in the present case, which is National Highway No.8, relating to Jaipur-Delhi National Highway, certainly one is required to have latest technology and safely measures installed which would certainly be part and parcel of roads. To say that fixing of W. Profile Safety Barrier is not relating to road, in my view, is contrary to what can be said to be part of a road. 11. On the National .....

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eloping/constructing a road over the years require latest technology and it is not merely putting concrete, grit, coal tar etc but many more things. The words relating to has a wide meaning and cannot be restricted only to putting of concrete, grit, coal tar etc but it should mean everything relating to road. The expression such as arising out of or in respect of the or in connection with or in relation to or in consequence of or concerning or relating to the contract are of the widest amplitude .....

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uot;relate" , see Corpus Juris Secundum, Volume 17, Page 693.The expression "in relation to" (so also "pertaining to"), is a very broad expression which presupposes another subject matter. These are words of comprehensiveness which might have both a direct significance as well as an indirect significance depending on the context, see State Wakf Board v. Abdul Azeez (AIR 1968 Mad 79), following and ap-proving Nitai Charan Bagchi v. Suresh Chandra Paul: 1962 (66) Cal WN 76 .....

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ion or connection with. It has been clearly mentioned that "relating to" has been held to be equivalent to or synonymous with as to "concerning with" and "pertaining to". The expression "pertaining to" is an expression of expansion and not of contraction. (AIR 1995 SC 1102: Mansukhlal Dhanraj Jain and others Vs. Eknath Vithal Ogale) 13. In my view, when we reach to a conclusion that fixing of profile-safety steel banker at hazardous location on National Hi .....

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