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TMI Blog2010 (7) TMI 940X X X X Extracts X X X X X X X X Extracts X X X X ..... t. The resale tax under section 6B of the Act is payable only on the turnover over and above those two turnovers. In that view of the matter, the order passed by the Commissioner runs counter to the express provisions contained in section 6B and cannot therefore be sustained. Appeal allowed. - S.T.A. No. 35 of 2010 (T-KST) - - - Dated:- 23-7-2010 - KUMAR N. AND MRS. NAGARATHNA B.V., JJ. The judgment of the court was delivered by N. KUMAR J. Admit. By consent of the parties, this appeal is taken up for final hearing. This appeal is by the assessee, challenging the order passed by the Commissioner of Commercial Taxes holding that the tax payable under section 6B of the Act would be in addition to tax payable under section 5B ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion. The Authority on re-consideration held that the assessee being liable to tax under section 5B was not liable to resale tax under section 6B. The assessee received a notice dated November 17, 2006 under section 22-A(2) of the Act from the respondent proposing to set aside the Authority's order dated March 31, 2006. The assessee filed its objections to the Commissioner's notice. The Commissioner held that the assessee was liable to resale taxes under section 6B of the Act in respect of the goods purchased by it from registered dealers and used in the execution of the works contracts. The assessee then preferred an appeal to this court against the said order. The said order of the Commissioner was set aside and the matter was r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ection 5 of the Act is the charging section. It provides that every dealer shall pay for each year tax on his taxable turnover at the rate prescribed at the point of first sale. Section 5A deals with taxation of industrial inputs. Section 5B deals with levy of tax on transfer of property in goods whether as goods or in some other form involved in the execution of works contract. Every dealer under the aforesaid provision shall pay for each year a tax under this Act on his taxable turnover of transfer of property in goods whether as goods or any other form involved in the works contract mentioned in column (2) of the Sixth Schedule at the rates specified in the corresponding entries in column (3) of the said Schedule. Section 5C deals with l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roviso. Clause (x) of the proviso reads as under: (x) all total amount paid or payable by the dealer as a consideration for the purchase of any of the goods in respect of which tax is leviable at the point of INsale. Therefore, resale tax is not leviable on such goods which has suffered tax under clause (x) of the proviso. Though sections 5, 5A, 5B, 5C, 6 and 6B of the Act are independent charging sections, if a registered dealer has paid the tax under any one of those sections, he is not liable to pay resale tax on that turnover which forms part of levy under the aforesaid provisions and is liable to pay resale tax only on such portion of the total turnover which has not yet suffered tax. This is clear from the fact that when the F ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch have been purchased from local registered dealers. It will be in addition to tax payable under section 5B of the Act in respect of first sale of goods in execution of works, i.e., transfer value of goods purchased from outside the State and unregistered dealers. It is to be noted that sections 5B and 6B are independent charging sections of the Act and that a works contractor sourcing his purchases from outside the State, local registered dealers and unregistered dealers for execution of works contract would be liable to tax under both the charging sections, i.e., tax under section 5B in respect of first deemed sale of goods and tax under section 6B on deemed second and subsequent sale of goods involved in the execution of works contract. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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