9911796707
TMI Blog1996 (1) TMI 396X X X X Extracts X X X X X X X X Extracts X X X X ..... tively for the assessment years 1987-88, 1988-89 and 1989-90. I have heard the learned counsel for the revisionist Sri Rakesh Kumar Agarwal and Sri R.D. Gupta, learned Standing Counsel. By section 3-F inserted with effect from September 13, 1985 transfer of property in goods, whether as goods or in some other form involved in the execution of a works contract became taxable under the Act. Section 8-D, that was enacted by U.P. Act No. 17 of 1987 with effect from April 27, 1987, made a provision for deduction of tax at source and obliged every person for making to any dealer for discharge of any liability on account of valuable consideration for the transfer of property in goods, whether as goods or in some other form in pursuance of a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s issued no liability can be determined by the provisions of section 3-F itself. In exercise of the powers under section 3-F the Government issued a notification dated April 27, 1987, prescribing the various types of works in respect of which the turnover shall be liable to tax. The notification also says that the tax shall be levied only if the turnover exceeds ₹ 1 lakh and the turnover has to be determined in the manner specified in rule 44(b). The result is that only the turnover in respect of works contracts mentioned in the Schedule to the said notification is liable to tax. The Schedule mentioned various types of work which include civil works like construction of buildings, bridges, roads, dams, barrages, sewage, spillways and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by the Division Bench the revisionist was not obliged to make any deduction from the amount payable to the contractors for executing works of minor repairs, white and colour washing of the buildings and the painting and polishing doors, etc., and therefore, did not commit any default within the meaning of sub-section (6) of section 8-D. No penalty can be levied on it. Further the levy of penalty under section 8-D(6) is discretionary and should not have been levied mechanically as has been done in this case without any regard to the interest of the State or the public interest. The revisionist is a State Government hospital and the burden of penalty will fall on the State exchequer. The Sales Tax Act is fiscal Act, intended to raise revenu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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