2006 (4) TMI 479

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..... ant Commissioner, Commercial Taxes, Kannur. The appeal was disposed of by order dated July 20, 2004 along with the appeal for the year 1999-2000. The assessment was modified with a direction to the assessing authority to verify the statements issued by the awarder after granting credit for the tax recovered and paid by the awarder. The Appellate Assistant Commissioner passed a common order in S.T.A. Nos. 398 of 2004 and 398A of 2004 on July 20, 2004 directing the assessing authority to modify the assessment for both the years. The assessing authority then passed a fresh assessment order on September 14, 2004 accepting the taxable turnover of Rs. 24,67,530. However, instead of levying tax at two per cent on the entire turnover the assessing .....

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..... work of road. Reference was also made to the meaning of the expression road in various dictionaries which state that a road is a specially prepared way between places for the use of pedestrians, riders, vehicles, etc. Counsel submitted that in order to construct a road between two places it is highly necessary to construct a drain on either side of the road and also construction of culverts if such construction is warranted for the use of the road. In any view of the matter, counsel submitted that if the assessee's work will not fall under section 7(7), the assessee should have been given option to go for regular assessment under section 5(1) rather than demanding tax at the compounded rate under section 7(7A) especially when the ass .....

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..... be in form No. 21B and shall be filed before the assessing authority in duplicate before the receipt of the contract amount or any instalment thereof. The assessee has also filed the declaration in form No. 21C. On verification of the declaration it was noticed that the construction of drain and culvert would fall under section 7(7A) and therefore to be assessed to tax at five per cent. Notice dated August 23, 2004 was then issued to the assessee calling for objections, if any, to the proposal. Notice was duly served on August 26, 2004 but the assessee did not file any objection to the proposal. The only question to be considered is whether the construction of drain or culvert is to be treated as forming part of construction work of roa .....

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