9911796707
TMI Blog2009 (3) TMI 940X X X X Extracts X X X X X X X X Extracts X X X X ..... The judgment of the court was delivered by C.N. RAMACHANDRAN NAIR J. The question raised in the sales tax revision filed by the assessee is whether the Tribunal was justified in sustaining the assessment on the value of ethylene oxide used in sterilisation of goods for others. The assessee is engaged in sterilisation of goods with ethylene oxide. In the course of assessment for the year 2003-04 the assessing officer noticed that substantial value of ethylene oxide brought from outside State on stock transfer was used up in the course of sterilisation work done by the assessee for various parties. He therefore assessed the contract receipts which includes value of ethylene oxide and service charges received as turnover for works contra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (a) In the case of transfer of goods involved in the execution of works contract where transfer is in the form of goods at the rates and at the points specified against such goods in the First, Second or Fifth Schedule. (b) In the case of transfer of goods involved in the execution of works contract (where the transfer is not in the form of goods but in some other form) specified in the Fourth Schedule, at the rate specified against such contract in the said Schedule. Besides the above, section 5C(1)(c)(iii) provides for cost of consumables used in the execution of works contract eligible for deduction in the determination of taxable turnover on works contract. It is obvious from the section and the provisions providing for determina ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xcluded in the determination of taxable turnover of works contract under section 5C of the Act. The decision of the Patna High Court in the case of application of pesticide and the other decisions of this court in the case of fire works squarely apply to the facts of this case. The decisions cited by the Government Pleader will not apply to this case because those are cases involving dyeing work where the dye is transferred to the fabric supplied by the customer and is retained in the cloth. We are therefore unable to uphold the order of the Tribunal confirming the levy and demand of tax on the value of ethylene oxide used up in sterilisation work. We therefore allow the sales tax revision by reversing the order of the Tribunal confirmin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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