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TMI Blog2008 (7) TMI 938X X X X Extracts X X X X X X X X Extracts X X X X ..... orks contract. The question of law raised in the revision is therefore, decided in favour of the applicant and against the Department and demand of Central sales tax on supply of sprinklers used in execution of works contract is held contrary to law. - 111 of 1999 - - - Dated:- 21-7-2008 - PRAKASH KRISHNA , J. PRAKASH KRISHNA J. The present revision arises out of an order dated November 30, 1998 passed by the Trade Tax Tribunal, Ghaziabad, in Second Appeal No. 388 of 1996. The applicant, a limited company, incorporated under the Indian Companies Act is registered, both under the U.P. Trade Tax Act, 1948 and also under the Central Sales Tax Act, 1956. It is engaged in the manufacture and sale of sprinkler irrigation system a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e, the Trade Tax Tribunal was justified in law in imposing tax on the amount of Rs. 13,96,228.23 which was received by the applicant on account of execution of works contract, whereas the assessing authority himself has levied tax on the material used for the amount of Rs. 7,00,000 in the execution of works contract? (3) Whether, on the facts and circumstances of the case, the Trade Tax Tribunal was justified in accepting the contention of the applicant that the works contract cannot be subjected to tax under the Central Sales Tax Act in view of the law laid down by the honourable Supreme Court in the case of Gannon Dunkerley Co. [1993] 88 STC 204? (4) Whether in any view of the matter, the order passed by the Tribunal is illegal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n, 40 per cent towards labour and installation charges and 20 per cent towards the profit. The decision of the apex court in the case of Gannon Dunkerley Co. [1993] 88 STC 204 was distinguished by the assessing authority on the ground that the dealer has received a lump sum payment on supply as well as for the work carried out on the spot. Thus, the assessing authority has levied the tax. The controversy involved in the present case is no longer res integra and has been set at rest by numerous decision of the apex court. A Constitution Bench of the apex court in Gannon Dunkerley Co. v. State of Rajasthan [1993] 88 STC 204; [1993] UPTC 416 has examined the matter in great detail. Paragraphs 41 and 44 of the judgment are reproduced ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... course of import and export into a sale inside the State. The question whether a sale is an outside sale or a sale inside the State or whether it is a sale in the course of import or export will have to be determined in accordance with the principles contained in sections 4 and 5 of the Central Sales Tax Act and the State Legislature while enacting the sales tax legislation for the State cannot make a departure from those principles. In Northern India Caterers (India) Ltd. v. Lt. Governor of Delhi [1978] 42 STC 386, the Supreme Court has held that the receipts from food and drinks supplied to guests staying in a hotel could not be split up into one of service and the other of sale of food and drinks and so, the proprietor, who provides ..... X X X X Extracts X X X X X X X X Extracts X X X X
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