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2016 (4) TMI 93 - ANDHRA PRADESH HIGH COURT

2016 (4) TMI 93 - ANDHRA PRADESH HIGH COURT - [2015] 85 VST 537 (T&AP) - Inclusion of works contract within the purview of A.P. VAT Act - Execution of works contract outside the state - Entire works contract executed in the State of Tamil Nadu where an assessment could be made to bring the said transaction within the purview of the A. P. VAT Act - Petitioner was not registered in the State of Tamil Nadu as on the date of entering into the contract - Held that:- While the assessing officer passed .....

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ere entered into at Mumbai. The statement of the assessing officer would be right with respect to the situs of the contract only when the goods were available at the time of the contract and the same does not hold good when the goods are to be supplied in later point of time. Therefore, the assessment so far as the bringing transaction relating to M/s. Tuticorin Coal Terminal Private Limited is concerned, is liable to be set aside. - Decided in favour of petitioner - Writ Petition No. 11409 of 2 .....

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with M/s. Tuticorin Coal Terminal Private Limited, in the taxable turnover. The brief facts of the case are that the petitioner is a private limited company registered under the Companies Act and it is engaged in the erection and procurement contract of Turnkey Engineering Company that specializes in design and supply of bulk material handling systems along with installation and commissioning of such systems at site. The petitioner challenges the assessment order dated March 20, 2015 under the .....

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tract of supply of goods as well as execution of works on August 23, 2012 with M/s. Tuticorin Coal Terminal Private Limited, a company registered in the State of Tamil Nadu in relation to their establishment of North Cargo Berth-II for handling bulk cargo at V. O. Chidambaranar Port Trust on design, build, finance, operate and transfer (DBFOT) basis. As evidenced from the contract which was entered into in Mumbai, the work is to be executed and was in fact executed at Tuticorin, outside the Stat .....

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d categorically set out that the petitioner has entered into several contracts with M/s. Tuticorin Coal Terminal Private Limited for supply of goods and provision of services to be provided in the State of Tamil Nadu and the said contracts are being executed from the petitioner's branch office situated at Chennai and returns are being filed in accordance with Tamil Nadu VAT laws and taxes are also being paid. Petitioner also claims to have submitted the copies of the contract, copies of tax .....

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laconic manner had passed the assessment order. The crucial objection as to how the petitioner is liable to be assessed under the A. P. VAT Act was not advocated to and dealt with. Challenging the assessment, the petitioner filed the present writ petition. When the matter came up for admission on May 1, 2015, this court had granted an interim order directing the respondents not to take any coercive steps to realize the tax of ₹ 8,75,10,108. A counter-affidavit has already been filed and th .....

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ystem for development of North Cargo Berth-II for a contractual consideration of ₹ 8.50 crores. The second agreement dated November 28, 2012 relates to supply of local components for conveyer system for development of North Cargo Berth II for a contractual consideration of ₹ 107 crores. The third agreement dated November 28, 2012 relates to supply of imported components for conveyer system for development of North Cargo Berth II for a contractual consideration of ₹ 26.50 crores .....

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he petitioner's company was registered under the Andhra Pradesh VAT Act. Further it was contended that the branch office in the State of Tamil Nadu came into existence after entering into the contract. Reliance was placed on certain case laws. Heard Sri S. Ravi, learned senior counsel appearing for the petitioner and Sri S. Suribabu, learned standing counsel for the Department. The main contention raised in the writ petition is in a narrow compass and the issue which is required to be consid .....

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verification. As per the statement filed by the dealer, there are three more agreements mentioned but not submitted copies of agreements. The details of agreements submitted are as follows: Sl. No. Agreement/Purchase Order Nature of work (Rupees in crores) 1 PO No: TCTPL/ NCBII/ CS/2012-1A dated 28.11.2012 Design, erection, commissioning, handover for conveyor system for development of North Cargo Berth-II 8.50 2 PO No: TCTPL/ NCBII/CS/2012-1B dated 28.11.2012 Supply of local components for conv .....

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pply of equipment' and other components and the other one for 'service contract'. But the contractor has not furnished all agreement copies along with their enclosures. On perusal of the records before the assessing authority, the assessing authority has come to conclusion that the contracts are 'indivisible' in nature even though break up of prices is given for each performance." A perusal of the above extracted para does not indicate any of the objections raised by the .....

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he assessing officer based on the search report. However, the learned counsel for the respondent fairly submits that the material which came to light to the assessing officer does not appear to have been put to the petitioner and at any rate the same was not made part of the imputation in the show-cause notice. In other words, the assessment order read in the light of the reply affidavit filed leaves no manner of doubt that the assessing officer did not apply his mind with regard to the crucial .....

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orted in 20th Century Finance Corpn. Ltd. v. State of Maharashtra [2000] 119 STC 182 (SC); AIR 2000 SC 2436, the assessing officer concluded that "the situs of sale would be where the property in goods passes, viz., where the contract is entered into". While the assessing officer passed the assessment order justified bringing of the transaction into the fold of A. P. VAT Act and the assessment order does not indicate what are the goods which have been transported from Visakhapatnam and .....

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