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TMI Blog2023 (4) TMI 344X X X X Extracts X X X X X X X X Extracts X X X X ..... enue filed under Section 4 of the Karnataka High Court Act are directed against order dated June 13, 2019 in W.P. No.14211/2018 c/w. W.P. No.25464/2018 and order dated April 24, 2018 in W.Ps. No. 13607/2017 &14081-14091/2017. The issue involved in these appeals is common and hence, they are disposed of by this common judgment. 2. In W.P. No.13607/2017 and 14081- 14091/2017, the assessee has challenged the reassessment order dated February 28, 2017 passed by the Assistant Commissioner of Commercial Taxes, (Audit)-1.3, Bangalore ('ACCT' for short) for the assessment period from April 2010 to March 2011. By the impugned order, the writ petition has been allowed. Hence, this appeal. 3. Briefly stated the facts pleaded in the lead case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appeal. Therefore, the Hon'ble Single Judge ought not to have entertained the writ petition under Article 226 of the Constitution; * the Hon'ble Single Judge has erred in holding that the transactions in question are 'interstate sales' falling within Section 3 of the CST Act. The condition specified in Section 3 have not been satisfied because, the purchase orders do not stipulate that the goods have to move from one State to the other; * after exhaustive analysis of the purchase orders and contracts, the Assessing Authority has rightly held that the transactions in question are composite 'works contract' and that they cannot be split into separate contracts; * the Hon'ble Supreme Court of India in Kone ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Revenue. 7. He further submitted that assessee had acquired the business of ECE Industries Ltd., and continued the business on the same 'business model'. The Revenue took a different stand for the A.Y. 2010-11 holding that the Contract amounted to a turn-key job and levied tax on inter-state sales which is contrary to Article 286 of the Constitution read with Section 3(a) of CST Act. He further submitted that levy of tax in the case on hand is without authority of law and in violation of Article 265 of the Constitution of India. With these submissions, he prayed for dismissal of these appeals. 8. We have carefully considered rival contentions and perused the records. 9. Undisputed facts of the case are, Purchase orders are placed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lifts and elevators were manufactured to the design and specification of the customers. The manufactured items were tested and thereafter dismantled and dispatched to the customers' place in the State by way of stock transfers. The branch office of the respondent-company executes the works contract by installing and commissioning of the lifts and elevators at the customers' place. Merely because the lifts and elevators are installed and commissioned in the State, it cannot be said that it is a local sale exigible to levy of tax under Section 5B of the Act on the ground that the actual transfer of property used in the works contract took place in the State of Karnataka. In view of the law declared by the Apex Court in Builders Ass ..... X X X X Extracts X X X X X X X X Extracts X X X X
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