Tax Management India. Com
Law and Practice  :  Digital eBook
Research is most exciting & rewarding


  TMI - Tax Management India. Com
Follow us:
  Facebook   Twitter   Linkedin   Telegram

TMI Blog

Home

2016 (8) TMI 475

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... cided to file Special Leave Petition and therefore in case of the present assessee, the works executed within SEZ area are treated to be taxable. Writ petition allowed. Direction to the assessing authority to modify his order of assessment in terms of the ratio laid down by the High Court in the case of Shandong Tiejun Electric Power Engineering Company Ltd 2015 (11) TMI 1496 - GUJARAT HIGH COURT. The decision to treat the works contract of the petitioner executed in SEZ area as dutiable is set aside - petitioner's tax liability to be computed - writ petition disposed off. - SPECIAL CIVIL APPLICATION NO. 7391 of 2016 - - - Dated:- 4-8-2016 - MR. AKIL KURESHI AND MR. A.J. SHASTRI, JJ. FOR THE PETITIONER : MR B S SOPARKAR, ADVOCATE .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... remedies. Though he agreed that the issue involved in the present proceedings is covered by the judgment of the High Court in case of Shandong Tiejun Electric Power Engineering Company Ltd. (supra), he submitted that the assessing authority had computed the tax without the aid of the such judgment to keep the issue open for the Revenue since the department had already filed appeal before the Tribunal against the judgment of the High Court in the said case. 4. It can thus, be seen that the sole issue involved in the present proceedings is undisputedly covered by the judgment of the High Court in case of Shandong Tiejun Electric Power Engineering Company Ltd. (supra). The issue being whether a dealer is entitled to claim exemption .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ction materials are purchased by the assessee, they are purchased for sale in the course of execution of works contract, which is to take place at a later point of time on the principle of accretion. Therefore, at the time of entry of goods into the SEZ area, there is no sale to the SEZ unit or to the developer, but the sale takes place at a later point of time. In view thereof, the assessee with a view to ensure compliance with the provisions of the SEZ law as well as requirement of endorsement of bills with a view to claim exemption from tax as zero rated sale, obtained the endorsement of the concerned authority on the purchase bills for goods which entered the SEZ area. Such goods were used in the execution of the works contract, which i .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... pra) wherein it is held thus: It can, thus, be seen that after April 1, 2008, the VAT Act has made provisions for collection of purchase tax even from units located in SEZ areas in relation to zero rated sale. The legislative scheme appears to be that the sales which fall under the zero rated sales would invite no sales tax to be borne by eh seller, but the purchaser would have to pay the purchase tax and, in turn, would be entitled to take tax credit as provided under section 2(37) and section 11(1) of the VAT Act. Whatever be the intention, in our opinion, without there being any clear provision giving such statutory provisions primacy over section 21 of the SEZ Act, no such tax can be levied. As noted above, in a fiscal statute, the .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... on to relegate the petitioner to the appellate remedy. Even the assessing authority in the impugned order after referring to the petitioner's contention that the issue is covered by the judgment of the High Court in case of Shandong Tiejun Electric Power Engineering Company Ltd. (supra) observed that against such judgment, the department has decided to file Special Leave Petition and therefore in case of the present assessee, the works executed within SEZ area are treated to be taxable. We therefore propose to allow the writ petition and direct the assessing authority to modify his order of assessment in terms of the ratio laid down by the High Court in the case of Shandong Tiejun Electric Power Engineering Company Ltd. (supra). .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

 

 

 

 

Quick Updates:Latest Updates