9911796707
TMI Blog2009 (6) TMI 953X X X X Extracts X X X X X X X X Extracts X X X X ..... in view of the discussion above, we are of the view that there cannot be any absolute bar against payment of tax at compounded rate on the works executed involving fabrication, supply and installation of kitchen cabinets. While the Commissioner's finding that in respect of supply of specified goods tax is payable at the rate provided in the Schedule is correct, we vacate that part of the order where he says that no compounding is permissible in respect of remaining work relating to fabrication, supply and installation of kitchen cabinets. Appeal partly allowed upholding the impugned order of the Commissioner issued under section 94 of the Act and by directing the assessing officer to consider eligibility for compounding depending upon th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rate provided under clause (a) or (d) of the charging section. The further finding of the Commissioner is that by virtue of second proviso contained in section 8(a)(ii) no compounding is permissible for the tax payable in respect of supply and installation of kitchen cabinet. The Finance Act, 2009 seeks to substitute section 8(a)(ii) with the following provision: (ii) any works contractor not falling under clause (i) above may, at his option, instead of paying tax in accordance with the provisions of the said section, shall pay tax at three per cent of the contract amount after deducting the purchase value of goods excluding freight and gross profit element consigned into the State on stock transfer or purchased from outside the State ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en compounding is not permissible and the item will attract tax at the rate provided under clause (a) or (d) of the Act. Counsel for the appellant has explained the nature of work executed by the appellant. On hearing the nature of work, we feel the Commissioner's impugned order is only partly correct because fabrication, supply and installation of kitchen cabinet partly involve works contract and it is partly supply of goods depending upon the nature of contract. It is common knowledge that zinc made of metal, electrical chimney manufactured by reputed companies, both from India and abroad, cooking ranges (electrical), etc., are supplied in the course of execution of works contract. In fact there are companies engaged in the manufac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are of the view that clause (ii) applies in respect of every divisible contract and even where specified goods are locally procured such goods will attract tax at scheduled rate as provided under section 6(1)(e) of the Act and the balance portion of work that is fabrication, supply and installation of kitchen cabinets with top, fittings, partitions, etc., by the appellant will be assessed as works contract. In view of the proposed amendment, and in view of the discussion above, we are of the view that there cannot be any absolute bar against payment of tax at compounded rate on the works executed involving fabrication, supply and installation of kitchen cabinets. While the Commissioner's finding that in respect of supply of specified ..... X X X X Extracts X X X X X X X X Extracts X X X X
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