TMI Blog2013 (6) TMI 716X X X X Extracts X X X X X X X X Extracts X X X X ..... bu, Additional Government Pleader (Taxes), for the petitioner. A. Chandrasekaran for P. Radhakrishnan for the respondent. ORDER The present tax case, filed at the instance of the Revenue, relating to the assessment year 1993-94, was admitted on the following substantial questions of law:- (1) Whether, in the facts and circumstances of the case, the Tribunal is legally right in law in holding that the materials which are used in the execution of works contract is liable for exemption under section 3B(2)(c) of the Act? (2) Whether, in the facts and circumstances of the case, the Tribunal has erred in taking into account that the assessee had converted the materials purchased into mosaic tiles in their own place of busines ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under section 3B(2)(b) of the TNGST Act. 3. After referring to the decision of this court in the decision reported in: [1995] 97 STC 503 (Mad.) (Tamil Nadu Mosaic Manufacturers Association v. State of Tamil Nadu), he submitted that the deduction that could be allowed in such cases would be only on labour charges for execution of the works; amount paid to a sub-contractor for labour and service; charges for planning, designing and architect's fees; charges for obtaining on hire or otherwise, machinery and tools for the execution of the works contract cost of consumables such as water, electricity, fuel, etc., used in the execution of the works contract; the property which is not transferred in the course of execution of works contract ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing officer. 6. Aggrieved by this remand order, the assessee went on appeal before the Tamil Nadu State Sales Tax Appellate Tribunal, wherein, the assessee pointed out that the charges received for manufacture were of two types, namely, supply and for laying and polishing. The coolie charges were paid on three occasions, namely, at the time of manufacture, at the time of transportation, loading and unloading and at the time of laying and polishing. Apart from that, there were electricity charges and other miscellaneous expenses meted out by the assessee, which were not considered at all. 7. The Tribunal pointed out that as the assessee had maintained separate stock accounts on the various raw materials utilized for the purpose of manu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... denied by the assessee that the tiles were manufactured from out of white cement, oxide, chips and stone powder. Thus, the resultant tiles are totally different from the raw materials. It is not denied by the assessee that the raw materials were subjected to the process, to result in a totally different commercial commodity. In the circumstances, it is difficult for anyone to say that the product used in the execution of the works contract is in the same form in which it was purchased. 9. Considering the above said fact, we have no hesitation in accepting the contention of the Revenue that in the absence of use of the materials purchased in the same form in the execution of the works contract, deduction under section 3B(2)(b) of the TNG ..... X X X X Extracts X X X X X X X X Extracts X X X X
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