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TMI Blog2009 (6) TMI 941X X X X Extracts X X X X X X X X Extracts X X X X ..... viz., during the relevant assessment period, the sub-clause (iii) of section 3(3) which specifically provides that involved in the execution of works contract shall be at only three per cent on the turnover relating to such sale would mean that if a product was purchased utilising form XVII and that particular product is utilised in works contract of that person, who has availed form XVII even in that case the tax payable would be only at the concessional rates was very much available under the Act, under which the assessee, under law, is entitled to claim concession and the same was rightly claimed by the assessee. In view of the fact that the assessee is entitled to seek necessary concession of rate of interest as per section 3(3)(ii ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... production or manufacture involved with the purchase of materials on issue of form XVII, he levied the tax on the differential rate of tax at five per cent. Aggrieved against the same, the assessee preferred an appeal before the Appellate Assistant Commissioner (CT), Vellore in A.P. No. 275 of 1995 relating to the assessment year 1990-91 and the Appellate Assistant Commissioner also came to the conclusion that there was no manufacture in respect of the purchased materials and the product was not utilised in new manufacture but only for the works contract and hence, confirmed the order of the assessing officer, but reduced the penalty. Aggrieved against the order dated December 27, 1996 passed by the Appellate Assistant Commissioner, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mentioned in the First Schedule, other than those falling under items 70(c) and 107 of the said Schedule, shall be at the rate of only three per cent on the turnover relating to such sale:) Note: Item 1: The expression beginning with the words 'for sale by him' and ending with the words 'to such sale', the expression 'for sale by him . . . to such sale' shall be substituted by Act 34 of 1991 Gazette dated October 23, 1991 Effective from September 5, 1991. During April 1, 1990 to September 4, 1991, the expression under section 3(3) (by Act 29 of 1990) was as follows: 3.. (3) Notwithstanding anything contained in sub-section (1) or sub-section (2), the tax payable by a dealer in respect of sale of any goods, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he same was rightly claimed by the assessee. Unfortunately, they have not relied on the relevant provision, viz., section 3(3)(iii), which would clearly indicate the items utilised for the purpose of works contract also is eligible for concessional rate of tax. As it is purely a question of law in the application of relevant provision, which was then available and the concession sought for by the assessee has been omitted to be considered by the authorities below, we feel it necessary that the order of the Tribunal has got to be set aside and the concession under law is eligible to be given to the assessee and accordingly, the same is restored and given to the assessee. In view of the fact that the assessee is entitled to seek necessa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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