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TMI Blog1988 (3) TMI 419X X X X Extracts X X X X X X X X Extracts X X X X ..... into a contract with the Andhra Pradesh State Irrigation Development Corporation Limited, hereinafter referred to as "the Corporation" to supply and erect pumpsets with necessary accessories at the places specified by the Corporation. A purchase order was issued by the Corporation on 8th May, 1978 which incorporated the details of the equipment required for erecting the pumpsets and the time-limit within which the erection should be completed. The purchase order also contains the other terms and conditions governing the contract between the parties. For the purpose of executing the contract the assessee purchased goods from outside the State and issued C forms to enable the sellers to pay the Central sales tax at the rate of 4 per cent o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aim for exemption and found that in point of fact the goods were purchased by the assessee not for purposes of resale, as claimed, but for purposes of using them in a works contract. The assessing authority went through the purchase order which contained the terms and conditions governing the contract and came to the conclusion that the terms unmistakably indicated that the purchase order is one for execution of a works contract. The assessing authority was of the opinion that by issuing C forms to the persons from whom the assessee purchased the goods certifying that the goods in question were purchased for purposes of resale, the assessee enabled the sellers to evade payment of Central sales tax. It may be pointed out that had it not been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for execution of works. The Tribunal declined to accept the assessee's plea and confirmed the penalty levied. This revision case is filed assailing the aforesaid order of the Tribunal. We have heard the learned counsel for the assessee, Sri S. Dasaratharama Reddi and also the learned Government Pleader. We have also gone through the purchase order and other material papers furnished. We find that in connection with the assessment under the Andhra Pradesh General Sales Tax Act, the assessee claimed deduction on the ground that the transact sales represent inter-State second sales covered by section 6(2) of the Act. It was not the assessee's case that the sum of Rs. 5,05,877 was exempt as relating to a works contract. There are no grounds ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rtant consideration, viz., whether on the facts and circumstances, it could be said that the assessee issued the C forms to the persons from whom he purchased the goods with the knowledge that he was not going to resell the same, to the Corporation. The purchase order containing the terms and conditions is a complex document containing a variety of covenants and one has to apply legal principles to determine whether the contract between the assessee and the Corporation was an indivisible works contract or a severable contract for the supply of goods and execution of works. It is not possible to subscribe to the view that such a complex examination should have been made by the assessee and he should have understood upon consideration of th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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