9911796707
TMI Blog1997 (9) TMI 563X X X X Extracts X X X X X X X X Extracts X X X X ..... ellant is a partnership-firm. It is engaged in the business of executing civil works like that of constructing bridges, etc. It is registered as a dealer under the Act. The three periods involved herein are the years ending on June 30, 1986, June 30, 1987 and March 31, 1988. 3.. The assessing officer concluded the assessment for the aforesaid periods under section 17(6) of the Act extending the benefit of composition tax. But, while doing so, he disallowed the claim of the appellant for deduction of labour charges out of the total consideration received by the appellant in respect of the works contract executed by it in respective periods. Being aggrieved by the said assessment orders the appellant went in appeal before the Additional Joi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble below so elects, accept in lieu of the amount of tax payable by him during the year under this Act, by way of composition an amount at the rates specified in the corresponding entries in column (3) of the table on his total turnover relating to transfer in goods (whether as goods or in some other form) involved in the execution of such works contract. From 1-4-1988: 17(6)(i): Notwithstanding anything contained in sub-sections (1) to (3), but subject to such conditions and in such circumstances as may be prescribed, the assessing authority of the area may, if a dealer liable to tax under section 5-B in respect of the works contract specified in column (2) of the table below so elects, accept in lieu of the amount of tax payable by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) in article 366 with regard to the interpretation of the above referred phrase it has been held that: Sub-clause (b) of clause (29A) states that tax on the sale or purchase of goods includes among other things a tax on the transfer of property in the goods (whether as goods or in some other form) involved in the execution of a works contract. It does not say that a tax on the sale or purchase of goods included a tax on the amount paid for the execution of a works contract. It refers to a tax on the transfer of property in goods (whether as goods or in some other form) involved in the execution of a works contract. The emphasis is on the transfer of property in goods (whether as goods or in some other form). The latter part of clause ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sub-clause (b) of clause (29A) of article 366 of the Constitution thus becomes subject to the same discipline to which any levy under entry 54 of the State List is made subject to under the Constitution. 8.. Keeping the amended and unamended provisions in juxtaposition and even independent of that, in view of the law laid down by the Supreme Court, it is not open for the Revenue to contend that the expression total turnover relating to transfer of property as appearing in section 17(6) of the Act as it stood prior to April 1, 1988 should be read as total turnover relating to the value of the works contract. Such an interpretation cannot be given by applying any known and established rule of construction of statutes. Accordingly, it ..... X X X X Extracts X X X X X X X X Extracts X X X X
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