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TMI Blog1990 (9) TMI 313X X X X Extracts X X X X X X X X Extracts X X X X ..... ble turnover of the petitioner in a sum of Rs. 1,76,000 taxable at 31 per cent. In addition to the tax, the assessing authority also levied penalty in a sum of Rs. 9,240 under section 12(3) of the Act for not disclosing the turnover to the department till it was detected. The turnover, according to the assessing officer, represents the sale consideration received by the petitioner towards supply and fixing of auditorium chairs. On appeal, the Appellate Assistant Commissioner dismissed the appeal, confirming the assessment order, including the levy of penalty. On further appeal, the Sales Tax Appellate Tribunal, while confirming the levy of tax, reduced the penalty to Rs. 5,000. 3.. Mr. K.J. Chandran, learned counsel appearing for the peti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... materials for carrying out the work and the owners of the theatre undertook to furnish to me for the work only MM foam rubber and foam leather fabric which were required for carrying out the work. I had to work in co-ordination and in concert with the instructions given by the architect and the owners and in keeping with the work in progress of the civil engineering contractor. I had to buy the necessary timber and bring the same to the site and manufacture the wooden frames required for the seats and the backs. I had also to obtain steel frames, links, back sheets from various workshops and arrange for their arrival at the site in a phased manner. Work had to be done on wooden frames, like, bale patti, gunny, hardboard, fixing, etc. I had ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ht out in the affidavit which have been noticed by the Tribunal, the learned counsel for the petitioner submits that the ratio in [1979] 44 STC 500 (Mad.) (A.R. Brothers v. Government of Tamil Nadu) will have no application at all. On the other hand, the ratio laid down by the Supreme Court in State of Rajasthan v. Man Industrial Corporation Ltd. reported in [1969] 24 STC 349, will apply to the facts of this case. He also cited another Supreme Court decision in Government of Andhra Pradesh v. Guntur Tobaccos Ltd. reported in [19651 16 STC 240. He placed reliance on another judgment of the Supreme Court in Ram Singh Sons Engineering Works v. Commissioner of Sales Tax reported in [1979] 43 STC 195; [1979] 2 SCR 621. 4.. On the other hand, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on on the part of the assessee to remove any of the defective materials within a period of 12 months from the date of erection. But it does not make it obligatory on it to erect the chairs in the auditorium as part of the building itself. In fact, the Tribunal pointed out that the assessee had not produced the relevant records and correspondence that passed between the assessee and the department to determine the nature of the contract in this particular case. In these circumstances, we are unable to hold that the contract in this case was a composite contract for the sale of the chairs as also the erection of the same in the auditorium, making it a works contract." We have noticed on facts that the work undertaken by the petitioner is th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ting setting out all the covenants and conditions thereof. The same can be gathered from the evidence and the attendant circumstances. This decision of the Supreme Court is cited to get over the adverse remark of the Tribunal to the effect that no written contract is produced by the petitioner. In the light of the ratio of the Supreme Court judgment, we hold that the absence of written contract by itself will not lead to an inference that the transaction is not "works contract". 6A. In passing, we may point out that the petitioner, we are told, was ultimately let-off from the clutches of excise liability. 7.. In [1969] 24 STC 349 (State of Rajasthan v. Man Industrial Corporation Ltd.), the Supreme Court has held as follows: "Held, on ..... X X X X Extracts X X X X X X X X Extracts X X X X
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