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TMI Blog2023 (1) TMI 1133X X X X Extracts X X X X X X X X Extracts X X X X ..... n A.P.No.1992/1999. 2. By the impugned order dated 12.12.2006, the order of the Appellate Commissioner dated 13.12.1999 in A.P.No.1992/1999 allowing the petitioner's appeal was reversed by the Tribunal in C.T.S.A.No.194/2000 filed by the third respondent herein. Relevant portion of the impugned order of the Tribunal reads as under:- As seen from the above, the dealer-respondent had filed the very same statement that was filed before the revisional authority to the pre-revision notice that was issued by him before this forum also. In the statement that was filed before us at the time of hearing also disclosed a turnover of Rs.35,00,132/- as taxable turnover and in which the steel forms a part of the turnover i.e the purchase value of Steel was Rs.18,71,302/- to which 8% gross profit was added and the total deemed sale value was worked out to Rs.20,21,006/- and it was taxable at 4% and the tax due was worked out as Rs.80,840/- and it is not known how SC due was also worked out by the dealer-respondent to an extent of Rs.12,126/-. So when the dealer-respondent himself had admitted the liability with reference to the steel that had been purchased in his statement both before the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nover. The dispute pertained to the following five items:- i. Sand ii. Bricks iii. Blue Metal iv. Timber Converted v. Steel Converted 4. The petitioner replied to the pre-assessment notice dated 06.02.1998 vide Letter dated 05.03.1998, wherein, the petitioner requested for waiver of tax on the steel purchased which according to the petitioner was not converted into grills. The third respondent as an assessing authority rejected the request of the petitioner and re-determined the taxable turnover of the petitioner as Rs.39,93,764/- and determined the tax, surcharge and penalty as follows:- Tax due : Rs.3,75,161/- Paid : Rs.1,15,067/- Balance : Rs.2,60,094/- Surcharge due : Rs.4,400/- Paid : Rs.3,815/- Balance : Rs. 585/- Penalty due : Rs.5,69,342/- Paid : Nil Balance : Rs.5,69,342/- 5. It is the case of the petitioner that there was no conversion of steel purchased, because, the steel was used as such and since the steel was purchased from a registered dealer within the State, it could not be subjected to tax once again. By mistake, it was wrongly declared that steel was purchased from unregistered dealers. It was therefore submitted that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t he had verified the purchase bills for the purchase of steel. It is strange that the same Assessing Authority has taken an entirely different stand in the revisional order as per the directions of the Enforcement Officials who have also not verified the accounts at all and arrived at the conclusion of conversion of this steel into some other commodity. In view of the above, I hold that the assessment made on the deemed sale value of steel grills for Rs.24,32,693/- is not proper. I set aside the same and allow the appeal relating to this issue. 6) Regarding timber purchased and converted, the Assessing Authority in his original order has accepted the turnover reported by the appellants and assessed the same at 8% and 11%. The appellants have added a gross profit of 8% towards this conversion. They have claimed that they have used their own carpenters to convert the timber into doors and windows. Hence they have added 8% gross profit to the timber purchase value and shown the same as taxable turnover. This is not acceptable. The appellants must prove with the records the actual cooly paid to the carpenters, and the fact that they have included the cooly charges paid to the carpen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the provisions of sub-section (1) of section 3, every dealer referred to in item (vi) of clause (g) of section (2) shall pay, for each year, a tax on his taxable turnover of transfer of property in goods involved in the execution of works contract at the rates mentioned in sub-section (2) of section 3 or, as the case may be, in section 4. Explanation.- Where any works contract involves more than one item of work, the rate of tax shall be determined separately for each such item of work. (2) The taxable turnover of the dealer of transfer of property involved in the execution of works contract shall, on and from the 26th day of June 1986, be arrived at after deducting the following amounts from the total turnover of that dealer:- (a) ........ (b) all amounts for which any goods, specified in the First Schedule or Second Schedule, are purchased from registered dealers liable to pay tax under this Act and used in the execution of works contract in the same form in which such goods were purchased; 11. The facts on record indicate that the petitioner had declared the total of Rs.62,63,932/- and taxable turnover of Rs.35,00,132/- in his return. However, the taxable turnover was ..... X X X X Extracts X X X X X X X X Extracts X X X X
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