9911796707
TMI Blog1996 (2) TMI 476X X X X Extracts X X X X X X X X Extracts X X X X ..... to assess the petitioner on the escaped turnover under section 16(1). By a notice dated September 28, 1995, the petitioner was called upon to submit his objections if any. By his reply dated November 8, 1995, objections were submitted. He also produced the trading account for the year 1993-94, regarding the sum of Rs. 46,73,419. His main contention was that he had purchased raw materials for the works contract which are jelly and sand, that bitumen, was supplied departmentally; that he purchased substantial portion of jelly from registered dealers, whose registration number was furnished. He claimed that out of Rs. 46,73,419, nearly Rs. 20 lakhs went towards payment of wages to the coolies. The assessing officer by his orders in TNGST: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n, only the value of such of those goods which are taxable will be segregated and brought under the category "taxable turnover". It is on that taxable turnover, levy is made subject to the exemptions provided in section 3-B(2). Section 3-B(2)(b) is relevant for the purpose of the case and it states that all amounts for which any goods specified in the First Schedule or Second Schedule, are purchased from registered dealers liable to pay tax under this Act and used in the execution of works contract in the same form in which such goods were purchased, should be excluded while determining the taxable turnover. According to the case put forth by the petitioner, the entire amount of Rs. 46,73,419, received by him from the Rural Works Departme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd treating 30 per cent of the value as "labour charges and other like charges", in the absence of acceptable accounts produced by the assessee, may be correct in so far as labour charges and other like charges are concerned. But, that does not mean that the remaining 70 per cent of the value of the works contract is to be automatically taken as the value of the taxable turnover of transfer of property in goods involved in the execution of works contract. Out of the remaining 70 per cent, deductions are permissible under section 3-B(2), there may be also the question of profit margin, hire charges and other incidental expenses. These have to be carefully considered by the assessing officer. Though the prayer in this petition is to set asi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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