2016 (4) TMI 177 - HC - VAT and Sales Tax

Correct consumption of excisable materials in the process of execution of works contract - Held that - the revisional authority after recording prima facie reasons and giving opportunity of being heard to the petitioner, disagreed with the view of the Assessing Officer. Such view was accepted by the Tribunal. No question of law therefore arises. Not agreed with the suggestion of the petitioner that in the process, the authorities taxed the entire value of the works contract and not just taxable raw material used in executing such contract. Decided against the appellant

Summary

Issues:
1. Challenge to Value Added Tax Tribunal's judgment regarding tax liability determination in works contract execution.

Analysis:
The petitioner, engaged in works contract execution, challenged the Value Added Tax Tribunal's judgment dismissing the revision petition against the Deputy Commissioner's order. The Deputy Commissioner revised the petitioner's return of sales tax, requiring payment of a net amount after a refund. The Tribunal dismissed the petition, emphasizing the authority's right to determine correct sales amount for tax levy, even if based on presumptions. The Tribunal concluded that the revisional authority properly exercised power and revised the order, ultimately dismissing the application.

The controversy centered on the correct consumption of excisable materials by the petitioner in executing works contracts. The revisional authority disagreed with the Assessing Officer after recording reasons and providing a hearing to the petitioner. The Tribunal upheld this view, leading to the dismissal of the petition. The judgment clarified that the authorities did not tax the entire value of works contracts but only the taxable raw materials used. Consequently, the petition was dismissed, and the notice was discharged.