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TMI Blog2013 (10) TMI 1219X X X X Extracts X X X X X X X X Extracts X X X X ..... etc., printed on the sachets. The successful tenderers supplied sachets according to the specifications. The assessee has filed the return for the assessment years 1999-2000 to 2004-05 in respect of which the present appeals have arised. 2. The Assessing Officer has found that the supply of sachets by the successful tenderers was in the nature of "works contract" and TDS should have been deducted. Thus, he called upon the assessee to pay the TDS amount. The Commissioner of Income-tax (Appeals) confirmed the order of the Assessing Officer. The Appellate Tribunal held that the transaction is not "works contract" and purchase of materials and, hence, deduction of TDS does not arise. The Revenue aggrieved by the said orders, has filed these ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... examined by the Board and it is considered that exclusive reliance on question/answer No. 15 of Circular No. 715, without taking into account the principles laid down in Circular No. 681 is not justified. Before taking a decision on the applicability of TDS under section 194C on a contract, it would have to be examined whether the contract in question is a 'contract for work' or a 'contract for sale' and TDS shall be applicable only where it is a 'contract for work'." 6. The counsel for the appellants further submitted that under section 194C(7)(iv) of the Income-tax Act defines the "work" in the following manner : "194C. Explanation (iv) 'work' shall include- (a) advertising ; (b) broadcasting and telecasting including production of p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bsp; "When the statute was amended to clarify the word 'work' under section 194C by introducing the aforesaid clause, it is obvious that the amendment is only clarifactory in nature and, therefore, it is retrospective. Parliament did not intend to change the law because of the conclusion which resulted in litigation. Parliament thought it fit to clarify by way of amendment so that the litigation could be avoided. In view of the aforesaid clarification and the statutory provision, it is clear that 'work' did not include manufacturing or supplying a product according to requirement upon specification by a customer by using raw materials purchased from a person other than such customer, as such a contract is a contract ..... X X X X Extracts X X X X X X X X Extracts X X X X
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