9911796707
TMI Blog1996 (4) TMI 468X X X X Extracts X X X X X X X X Extracts X X X X ..... in goods involved in the execution of a works contract shall be determined in the manner prescribed and shall be liable to tax at such rate not exceeding fifteen per cent, as the State Government may by notification declare. In exercise of the power under section 3-F, the State Government by notification published on April 27, 1987, described as many as fifteen types of works contract, in the Schedule. It is not necessary to reproduce all the works contract enumerated in the Schedule but reproduction of works contract as described at serial Nos. (1) and (6) will suffice. They are as follows: "Sl. No. (1) Fabrication and installation of plant and machinery. Sl. No. (2) to (5)............ Sl. No. (6) Civil works like construction of bu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e an application to take benefit of composition scheme for the assessment years 1987-88, 1988-89, 1989-90 and 1990-91 which was rejected by impugned order dated February 8, 1993 (annexure "5" to the writ petition) by the Deputy Commissioner on the ground that both the contracts of the petitioner do not fall in the category of civil works as envisaged by the composition scheme. Aggrieved, the petitioner filed a Writ Petition No. 568 of 1993 in this Court for quashing the said order which was rejected by this Court by order dated November 1, 1993 (annexure "8" to the writ petition) with the observations that the petitioner may file a review application within a period of three weeks which shall be disposed of by the Deputy Commissioner in acc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cts involving installation of huge machinery and electrical equipment also fall in the category of civil contracts. It is, therefore, wholly incorrect to say that civil contracts as envisaged by the composition scheme refer only to the building construction contracts. 7.. From the composition scheme, it is manifest that it does not refer to the civil contracts simpliciter but it refers to indivisible civil contracts. The petitioner entered into agreements as stated above for the installation of waste water treatment plant and for construction of sewage treatment plant involving enormous constructions of civil nature. From Schedule (C) of the agreement (annexure "1" to the supplementary-affidavit), it is manifest that the petitioner undert ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stallation of machinery is not enough but to make the plant operative, completion of civil works of enormous size is necessary. The civil works undertaken by the petitioner and the installation of the machinery are integral part of the contracts, which the petitioner executed. The installation of the machinery and completion of the civil works relating thereto are so inextricably mixed up that the project can never be said to have been completed without completing both the works together. 9.. Such contracts being of complex nature, it is difficult for the respondentdepartment to find out as to how much property in the goods was transferred and this is why the department thought it expedient to devise the composition scheme so that tax may ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at serial No. 6 of the Schedule in the notification of April 27, 1987. Civil contracts cannot be confined only to the building construction contracts but they take within their sweep all the constructions of civil nature, exhaustive description of which is not possible and, therefore, the word "like" has been used as a suffix to the words "civil works" at serial No. 6 of the Schedule in the notification dated April 27, 1987. 11.. For the reasons, we are of the view that the petitioner is entitled to take benefit of the composition scheme in respect of its both the indivisible civil contracts. 12.. The petition, therefore, succeeds and is allowed. Impugned orders dated February 8, 1993 and February 11, 1994 (annexures "5" and "10" respec ..... X X X X Extracts X X X X X X X X Extracts X X X X
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