9911796707
TMI Blog2013 (10) TMI 822X X X X Extracts X X X X X X X X Extracts X X X X ..... e had with Larsen and Toubro Limited, is not produced before this Court, yet, a reading of the order of the first Appellate Authority shows that the agreement was placed for consideration before the first Appellate Authority and in the preceding paragraph we have already extracted the core of the agreement entered into between the assessee and Larsen and Toubro Limited - apart from lack of materials which support the order of reassessment, we further find from the order of the Tribunal, that practically it had agreed with the findings of the first Appellate Authority on the nature of the contract, however, it fell into error in its reasoning that the sale was completed when the goods were unloaded and delivered to Larsen and Toubro Limited. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is a works contract? 3. Whether the Appellate Tribunal is correct in confirming the penalty when the assessment is only under Section 16(1)(b) and not under Section 16(1)(a) and for assessments under Section 16(1)(b) there cannot be any penalty? 4. Whether the Appellate Tribunal is right in assessing the transaction at the rate of 12.6% even assuming the contract is for sale. This question is raised without prejudice to the contention that the contract is only for works contract and not for sale?" 2. The assessee herein was given a sub contract work by M/s. Larsen Toubro Limited under work order dated 1.9.2004 for manufacture, supply of GRP pipes with couplings and all necessary fittings and specials (excluding valves) for diameters ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ioner, who went into the agreement and scope of work and specification, which reads as follows:- 1. Scope of work and specification : The scope of work includes manufacture, supply of GRP pipes with couplings and all necessary fittings and special (executive valves) for diameter 8000 (SN 2500), factory testing as per the IS/Any accepted international standard and approved GAP, packing, transporting upto his site, unloading of the pipe at the work sites, laying joining and Hydro testing and commissioning of the sewage pumping main (including all labour tools, tackles and other incidental works etc) for Tiruppur water supply and sewage project as per following specification. However, the equipment required for unloading and execution will ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 16AA of the Tamil Nadu General Sales Tax Act, he however, confined his argument to the merits of the assessment only. Hence, it is not necessary for us to deal with the question of jurisdiction of the Assessing Officer to reopen the assessment under Section 16AA of the Act in respect of assessment made under Section 7C of the Act. 8. As far as merits of the reassessment order is concerned, we agree with the submission made by learned counsel for the assessee. Admittedly, in the case on hand, the assessee is a sub contractor to M/s.Larsen and Toubro, who was granted contract for manufacture and supply of GRP pipes with required diameter with couplings and all necessary fittings and the transportation to the site and for laying, jointi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for sale, we do not find any material based on which the Assessing Authority thought it fit to reopen the assessment. Thus, apart from lack of materials which support the order of reassessment, we further find from the order of the Tribunal, that practically it had agreed with the findings of the first Appellate Authority on the nature of the contract, however, it fell into error in its reasoning that the sale was completed when the goods were unloaded and delivered to Larsen and Toubro Limited. Such reasoning is contrary to the terms of the agreement which were extracted by the first Appellate Authority in its order, which in the preceding paragraphs, we have also extracted in our order. As already pointed out when the nature of work invo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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