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TMI Blog2006 (7) TMI 617X X X X Extracts X X X X X X X X Extracts X X X X ..... bour contracts such as earthwork excavation without involving use of any materials. Petitioner opted for composition assessment under section 17(6) of the Act and filed return in form No. 8 and produced certificates issued by the irrigation department ORDER The order of the court was made by R. GURURAJAN J.--Petitioner is a civil contractor at Mandya. He isregistered as a dealer under the sales tax laws. During the assessment year1996-97 petitioner executed certain civil works for the irrigation depart-ment of Government of Karnataka and received a sum of Rs. 31,85,983 asconsideration. Some of the contracts executed involved use of material asalso labour, while some contracts were pure labour contracts such as earth-work excavation without ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of tax relating to pure labour contract receipts, on the view that under the provisions of section 17(6) of the Act, total turnover constitutes total receipts and is liable to tax? 3.. Whether the decision of the apex Court in State of Kerala v. Builders Association of India [1997] 104 STC 134 authorised levy of tax even in respect of pure labour contracts not involving use/transfer of property in any goods, merely because the petitioner opted for composition assessment under section 17(6) of the Act? 4.. Whether the Appellate Tribunal is legally justified in approving the levy of tax by holding that in a composition assessment, total receipts constitute total turnover that is liable to tax, irrespective of the fact that the contract did ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thority of the area may, if a dealer liable to tax under section 5B 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 on the total consideration for the works contracts executed by him in that year in the State in respect of works contracts specified in column (2) of the Sixth Schedule (at the rate of four per cent); (ii) Any dealer may apply to the assessing authority to be permitted to pay the amount under clause (i) and, on being so permitted, he shall pay tax in advance as provided for under section 12-B and all the provisions of section 12-B mutatis mutandis shall apply to this subsection; (iii) The amount paid under clause (ii), shall be subject to such adju ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sub-sections'. In these circumstances, it is evident that a contractor who had not opted to this alternate method of taxation cannot complain against the said sub-sections, for he is in no way affected by them. Nor can the contractor who has opted to the said alternate method of taxation, complain. Having voluntarily, and with the full knowledge of the features of the alternate method of taxation, opted to be governed by it, a contractor cannot be heard to question the validity of the relevant sub-sections or the rules. . . .The impugned sub-sections have evolved a convenient, hassle-free and simple method of assessment just as the system of levy of entertainment tax on the gross collection capacity of the cinema theatres. By opting to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at in the field of taxation, the Legislature must be allowed greater 'play in the joints', as it is called." The said judgment would show that the said option saves the contractor from the botheration of book-keeping, assessment, appeals, etc. It provides a ready solution to the contractor. Having opted for section 17(6), it is now not open to the assessee to bifurcate the contract and the tax thereon for the purpose of payment of tax as sought to be argued before us. In fact, the Appellate Tribunal after noticing the judgment of the Supreme Court has rightly chosen to hold, in our view, against the assessee. The Appellate Tribunal has rightly, in our view, held that the assessee having voluntarily, and with the full knowledge ..... X X X X Extracts X X X X X X X X Extracts X X X X
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