TMI Blog2021 (9) TMI 827X X X X Extracts X X X X X X X X Extracts X X X X ..... e and on which applicable Central Sales Tax was paid. When the petitioner undertook the work of installation of such machinery and commissioning of the project, the petitioner could be charged only on the incremental value where the local sale took place. The sale of elevators cannot be by any standard treated as a local sale. The Assessing Officer devised an artificial means to tax the same under TVAT Act by suggesting that the petitioner had a local registration and in the course of execution of the work of installation and commissioning of elevators, the petitioner could have brought the machinery from outside and implemented the contract. If we understand correctly what the Assessing Officer is trying to convey is that had the petiti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The elevators would be sold to the contractees on which Central Sales Tax would be paid since such a sale would be considered as an inter-state sale. The petitioner would procure peripheral machinery and use further manpower for installation purpose on which it would pay VAT. The Assessing Officer, however, was of the opinion that even on the cost of elevators the petitioner must pay the local taxes. After issuing notice to the petitioner, he framed assessment for the years 2009-10 to 2013-14 demanding unpaid tax. In the order of assessment he did notice the case of the petitioner that on the value of the elevator no local tax can be levied since it was an inter-state sale. However, he overcame this argument making following observations ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uble taxation, upon which this revision petition has been filed. 4. Having heard learned counsel for the parties and having perused materials on record, we find that the Assessing Officer and the revisional authority have made a serious error in demanding VAT from the petitioner on sale and supply of the elevators to its contractees. In plain terms, the machinery was supplied separately by way of a sale which was in the nature of an inter-state sale and on which applicable Central Sales Tax was paid. When the petitioner undertook the work of installation of such machinery and commissioning of the project, the petitioner could be charged only on the incremental value where the local sale took place. The sale of elevators cannot be by any ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
