9911796707
TMI Blog2024 (12) TMI 1130X X X X Extracts X X X X X X X X Extracts X X X X ..... o the Indian Railways as well as other dealers. It is admitted that these sleepers are manufactured according to the specifications and designs provided by Indian Railways. The petitioner, treating the supply of these sleepers as sales, had paid tax @ 4% on the turnover, for the assessment period 01.03.2007 to 31.08.2008. 2. The Assessing Officer, rejected the said contention of the petitioner and held that the supply of PSC sleepers would amount to execution of a works contract which is to be taxed @12.5% and had passed an order of assessment, dated 28.05.2009, assessing the turnover of the petitioner @ 4% for some goods and 12.5% for the turnover relating to sleepers. 3. Aggrieved by the said order of assessment, the petitioner has move ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... land owners who had offered the land for construction of a multi-storied apartments and Commercial Complexes and the developer who took up construction, under this agreement. The Hon'ble Supreme Court after considering the definition of 'works contract', contained in the Karnataka Sales Tax Act, which is in pari materia with the definition contained in APGST Act, had held that an agreement for construction of apartments, for a valuable consideration or in installments would amount to a works contract. The ratio of the Judgment of the Hon'ble Supreme Court can be extracted as follows: "We have heard the parties, perused the various documents and considered the cases cited at the Bar. As has been rightly submitted by Mr. Hegde the definitio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er) Act, 1972 will have no relevance". 8. The learned Government Pleader, in support of the said order of the Assessing Authority, would contend that PSC Sleepers are not goods known to the market and are specialized goods made according to the specifications given by only one customer i.e., Indian Railways. He would submit that once sleepers are not goods known to the market, the question of supply of such goods being treated as 'sales' would not arise. 9. The Judgment of the Hon'ble Supreme Court, in K. Raheja Development Corporation vs. State of Karnataka, relates to the question of whether a construction agreement for construction of apartments would amount to a works contract or whether sale of such apartments, after construction wou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ngs, in this regard, by the assessing officer. 12. In the present case, the petitioner is in regular manufacture of these sleepers which are supplied not only to Indian Railways but also to other dealers. Though the fact that the PSC Sleepers are made according to the specifications of Indian Railways, may be a significant factor which has to be taken into account, the fact remains that these sleepers are manufactured in the regular course of manufacture by the petitioner. In such circumstances, it may not be appropriate to conclude that the contract in question was a works contract and not a contract of sale. 13. In view of the non-exclusive nature of supply and in view of the facts mentioned above, this Writ Petition is allowed setting ..... X X X X Extracts X X X X X X X X Extracts X X X X
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