TMI Blog2015 (11) TMI 1427X X X X Extracts X X X X X X X X Extracts X X X X ..... to a particular customer is not a commercial commodity in the sense that it cannot be sold in the market to any other person, the transaction is only a works contract. - work executed by the assessee related to printing of materials and such printed materials are meant for particular customers, who placed orders and it cannot be sold in the open market like any other goods. Going by the principle laid down in the above-said decision of the Apex Court [1988 (1) TMI 329 - SUPREME COURT OF INDIA], which was followed by this Court in the subsequent decisions, we have no hesitation in accepting the case of the assessee that the transaction in question does not call for any liabililty under the Act. As pointed out by the Apex Court, the mere fact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d in the circumstances of the case, the respondent is right in law by one and the same proceedings set aside the order of the Appellate Authority rendered in the quantum appeal and penalty appeal? 5. Whether on the facts and in the circumstances of the case, the respondent is right in law in restoring penalty, when the entire turnover is disclosed and claim of exemption was made? 2. The brief facts of the case are as follows: The petitioner/assessee is a dealer in printing materials. The assessee filed return of income for the assessment year 1994-95 admitting the total and taxable turnover at ₹ 1,05,43,281/- and ₹ 73,56,670/- respectively after claiming exemption on the sales turnover of printing of Annual Report a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e issued, the assessee filed a reply stating that the receipts obtained from the annual reports were entitled to be exempted as reading books under various circulars and statutory notifications. Not satisfied with the reply filed by the assessee, the Joint Commissioner held that there was no proof that the customers had entered into contract with the dealers for purchase of paper and for job work and that no works contract was involved when the printed materials were manufactured out of their own materials and sold by the dealers. Accordingly, the Joint Commissioner set aside the order of the First Appellate Authority, thereby confirmed the order of the Assessing Officer. 5. Being aggrieved by the order of the Joint Commissioner, the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is for printing annual report as per the specification given by the customer, it is, therefore, in the nature of works contract. Where the finished product supplied to a particular customer is not a commercial commodity in the sense that it cannot be sold in the market to any other person, the transaction is only a works contract. 10. The Apex Court, in similar circumstances, in the decision reported in 73 STC 1 ( State of Tamil Nadu Vs. Anandam Viswanathan) while dealing with the case of the printed materials, particularly in the context of printing of question papers, pointed out that in every case, the nature of the contract and the transaction must be gone into so as to arrive at a conclusion as to whether the transaction is a wo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fact that in the execution of a contract for work some materials are used and the property/goods so used, passes to the other party, the contractor undertaking to do the work will not necessarily be deemed, on that account, to sell the materials. Whether or not and which part of the job work relates to that depends as mentioned hereinbefore, on the nature of the transaction 12. In an identical circumstance, while dealing with the works contract executed by the assessee for printing and supplying letter pads, labels, bill book, memo pad, order forms and also printed manuals to the customers like BHEL and Co-operative Societies, this Court, by order dated 10.8.2012, in T.C.No.1984 of 2012 , following the above-said decision of the Ape ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
