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TMI Blog2006 (2) TMI 619X X X X Extracts X X X X X X X X Extracts X X X X ..... thority and remitting the matter back to the first appellate authority for fresh disposal in the light of the observations made in the said order. The facts leading to this petition are as under: The petitioner is a public limited company (for short, hereinafter referred to as "the assessee"). The assessee was awarded contract in the year 199596 for construction of an indoor stadium within the premises of Sree Kanteerva Stadium at Bangalore. The work for construction of the stadium was commenced in the year 1996 and was completed in 1997-98. A part of the work was sub-contracted by the assessee and an amount of Rs. 1,25,30,500 was paid to the sub-contractor for the said contracted works. The assessee claimed that the payment ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r. In the instant case admittedly the assessee has paid money for execution of work by the subcontractor. Therefore, there is no sale and there is no turnover and, therefore, there is no liability to pay turnover tax under section 6B. He also pointed out that the sub-contractor has paid the turnover tax on the works entrusted to him. Therefore, he cannot be called upon to pay turnover tax at his hands for the works done by the sub-contractor. In this connection he referred to section 6B and definition of "turnover" as found in section 2(1)(v) and also the definition of "sale" in section 2(1)(t) of the Act. However, the learned Government Advocate appearing for the respondents supported the order passed by the Tribunal. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... over in all goods of a dealer at all places of business in the State, whether or not the whole or any portion of such turnover is liable to tax, including the turnover of purchase or sale in the course of the inter-State trade or commerce or in the course of export of the goods out of the territory of India or in the course of import of the goods into the territory of India; (v) 'Turnover' means the aggregate amount for which goods are bought or sold, or supplied or distributed or delivered or otherwise disposed of in any of the ways referred to in clause (t) by a dealer, either directly or through another, on his own account or on account of others, whether for cash or for deferred payment or other valuable consideration." S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 33, 34, 37, 38, 39 and 41 of the Sixth Schedule,-- (i) all amounts received or receivable in respect of goods specified in second, third and fourth Schedules which are purchased from registered dealers liable to pay tax under the Act; (ii) all amounts received or receivable in respect of goods which are specifically exempted from tax under any of the provisions of the Act; (iii) . . . Provided that no such deduction shall be allowed unless the dealer claiming deduction produces proof that the sub-contractor is a registered dealer liable to tax under the Act and that the turnover of such amounts is included in the monthly statement of return of turnover, as the case may be, filed by such sub-contractor." In so far as levy of turnov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r in some other form) involved in the execution of the works contract mentioned in column No. (2) of the Schedule VI at the rates specified in the corresponding entries in column No. (3) of the said Schedule. The word "sale" as defined with reference to works contract, means, transfer of property in goods (whether as goods or in some other form) involved in the execution of a works contract. The reason is obvious. In a works contract, the principal contractor who entrust a part of a work to the works contractor, may supply the material or pay him cash/money for execution of the work. Therefore, the word "sale" which is an inclusive definition takes within its ambit, even the value of the work paid by way of cash. In cal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nto consideration and then on the total turnover the main contractor is liable to pay turnover tax as is clear from the language employed in section 6B of the Act. In other words, the turnover tax is liable to be paid both by the principal contractor and the sub-contractor independently. This judgment deals with liability of sales tax and not turnover tax. The learned counsel for the assessee also relied on a judgment of this court in the case of Belgaum Structural Engineering Pvt. Limited v. Additional Commissioner of Commercial Taxes, Belgaum Zone, Belgaum [1998] 111 STC 222 where it has been held that, the sale price or the purchase price is nothing but the price paid for goods while purchasing or selling. The said judgment has no appl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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