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2015 (11) TMI 1497 - RAJASTHAN HIGH COURT

2015 (11) TMI 1497 - RAJASTHAN HIGH COURT - TMI - Purchase of goods for use in works contract from other state - interstate movement of goods against Form-C - Denial of exemption claim - Notification dated 28.04.1993 - Held that:- Assessee is a contractor and carrying on the constructions works and he purchased the goods in the course of inter-State trade, the CST would be payable in the appropriate State, i.e. U.P. wherefrom the movement of the goods commenced and for this reason, the contracto .....

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sed in the case of CTO Vs. M/s Jatan Construction Pvt. Ltd., while upholding the orders of the Deputy Commissioners (Appeals) and of the learned Tax Board. - Decided against Revenue. - S.B. SALES TAX REVISION PETITION NO. 439/2005 - Dated:- 17-9-2015 - Dr. Vineet Kothari, J Mr. Vinit Kumar Mathur, Mr. Dinesh Godara And Mr. Falgun Buch : For the Petitioner Ms. Sushila Sharma on behalf of Mr. D.K. Sharma : For the Respondent ORDER 1. The present revision petition has been filed by the Revenue aggr .....

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mpugned order dated 14.03.2005, while upholding the order of the Deputy Commissioner (Appeals), Jodhpur dated16.07.2003, held as under:- We are, therefore, of the view that the prohibition contained in Condition No.4 of not using the declaration form to purchase goods involved in the execution of a works contract, is only applicable to purchases to be made within the State under various provisions of the RST Act. In this view of the matter, the correct interpretation the words declaration forms .....

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the Revenue fairly submitted that the controversy involved in the present revision petition has been decided by the co-ordinate Bench of this Court at Jaipur in the case of Commercial Taxes Officer, Works Contract & Leasing Tax, Commercial Taxes, Ajmer Vs. M/s Jatan Construction Pvt. Ltd., Kar Bhawan Ka Pass, Todarmal Marg, Ajmer [S.B. Salex Tax Revision Petition No.67/2006, decided on 22.08.2013]. 4. The relevant observations of the learned Single Judge in the aforesaid case is quoted herei .....

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r.IV/92/79 dated 4.3.1992 [S.No.872], the State Govt. hereby exempted from tax the transfer of property in goods (whether as goods or in some other form) involved in the execution of works contracts relating to buildings, bridges, dams, roads and canals on the following conditions, namely:- 1. That the contractor undertakes to pay exemption fee @ 1% on the total value of such contract; 2. That the contractor holds a valid certificate of exemption for such contract; 3. That such contract is award .....

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o pay tax on the said purchases at the rate notified under S.5, with interest, subject, however, if he has paid any tax at the rate of such purchases, tax so paid shall be allowed as set off again the tax payable by him under this condition. 9. Section 4(2) of the RST Act, 1954 is also quoted hereunder:- 4. Act not to apply to certain sales.- (1).......... (2) Where the State Government is of opinion that it is necessary or expedient in the public interest so to do, the State Government may, by .....

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ore, when it has been issued under the RST Act, then, in my view, it cannot be expressed to be intended for having been issued under the Central Sales Tax Act (for short, 'CST Act'). It is also clear on perusal of the notification that it was meant for a contractor and when the contractor has satisfied all the conditions laid down in the said notification, then benefits arising out of the said notification have to be conferred on such a dealer (In the present case, the respondent-contrac .....

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rate but such a prohibition imposed under the RST Act cannot be allowed to be extended to the purchases of the goods in the course of Inter-State trade or commerce under the provisions of the CST Act. In my view, the provision contained in condition No.4 of not using the declaration forms to purchase goods involved in the execution of the works contract is only applicable to purchases to be made within the State under the various provisions of the RST Act. In my view, the correct interpretation .....

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, was caused by the respondent-assessee under the RST Act, 1954. In my view, the Tax Board as well as DC(A) came to the correct conclusion and even otherwise, in view of the observations made herein above, the notification has to be held to be under the RST Act, 1954 only. 11. Accordingly, the question of law is answered in favour of the respondent-assesee and against the petitioner-assessing officer. 12. Consequently, instant sales tax revision petition has no force and the same is accordingly .....

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this Court is in respectful agreement with the view taken by the co-ordinate Bench of this Court at Jaipur. However, it may be added that though the word Declaration Forms employed in Condition No. 4 of the Notification dated 28.04.1993 does not restrict furnishing of declaration forms only issued under the provisions of the RST Act and, therefore, they could as well cover the declaration forms like 'C' Forms issued under the CST Act, 1956, but there is no stipulation in the said Condit .....

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full rate notified under Section 5 of the RST Act with interest and the tax so paid shall be allowed as set off against the tax payable by him under this notification. The State Legislature has no power to impose additional tax in case of inter-State purchases made against 'C' Form. Therefore, no such restriction could have been included in the Notification. 7. The Notification dated 28.04.1993 allows a general exemption to the contractors, who are engaged in the works contract, like co .....

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