9911796707
TMI Blog2014 (5) TMI 210X X X X Extracts X X X X X X X X Extracts X X X X ..... , payment on labour charges has always been held as outside the purview of the Act for the purpose of taxing it. However, where the consideration paid in an indivisible contract could not be apportioned and the cost of materials and labour charges and the divisibility was not possible, the courts took the view that such an indivisible contract would not be brought to tax, but where indivisible contract had divisibility in it, the payment made could be ascertained as one falling for labour charges and other for the goods, the jurisdiction to assess the sale provision was always there - 46th amendment made it possible for the State to treat the indivisible contract as a deemed sale and that by legal fiction, the turnover relating to labour ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pellate Authority. The Appellate Assistant Commissioner pointed out that the assessee is stated to have expended a sum of Rs.14,62,403/- being expenditure met on the services received from the technicians. This included the travel and stay and remuneration charges. The first Appellate Authority pointed out that the assessee had not furnished copy of the agreement regarding rendering of the services, therefore, it was not known whether the charges of Rs.14,62,403/-, would form integral part of commissioning the machines at the site of Tamil Nadu Newsprint Papers Limited. However, at the time of hearing of the appeal, the assessee filed a copy of the service bill dated 21.9.93 for commissioning of rewinder model Conwind 2300 against the purch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s, a sum of Rs.57,27,500/- represented the price of indigenous components. As per clause 14, the supplier had to demonstrate the performance of the Machine in their shop floor before the shipment to Tamil Nadu Newsprint Limited. The supplier should also obtain the services of the Commissioning Engineer from Jagenberg for a period not less than four days for fine tuning of the equipment after commissioning. The cost of rendering of the services would be reimbursed to the supplier by the assessee. Subsequent to the erection of the machinery or the commissioning of the machinery, the Engineers from Jagenberg came to the assessee's premises, stayed for four days and rendered services, for which, apart from the travel and stay, they were also gr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... well as for stay and travel. In the light of the fact that the assessee had not produced necessary documents before the Assessing Officer, the Tribunal should have remanded the matter back as had been done by the Appellate Assistant Commissioner. 4. Learned counsel for the assessee placed before this Court the documents pertaining to the purchase order dated 30.5.1991 and the invoices for the purchase of rewinder model conwind as per order dated 21.3.1991 referring to the minutes of meeting and the letter of intent and the final invoices raised in the year 1992. A perusal of the purchase orders placed in Annexure II dated 30.5.91 show that the supplier had demonstrated the performance of the machines in their shop floor before shipment t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t to the Constitution, the settled principle was that the labour charges charged for separately, would not form part of the turnover for the purpose of assessment under T.N.G.S.T. Act. However, where the consideration paid in an indivisible contract could not be apportioned, and the cost of materials and labour charges and the divisibility was not possible, the courts took the view that such an indivisible contract would not be brought to tax, but where indivisible contract had divisibility in it, the payment made could be ascertained as one falling for labour charges and other for the goods, the jurisdiction to assess the sale provision was always there. Thus, 46th amendment made it possible for the State to treat the indivisible contract ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
