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TMI Blog2012 (7) TMI 855X X X X Extracts X X X X X X X X Extracts X X X X ..... pugned in this revisional petition, is hereby set aside. The order of the revisional authority is restored. - S.T.R.P. No. 3 of 2008 - - - Dated:- 16-7-2012 - KUMAR N. AND KEMPANNA H.S., JJ. For the Appellant : Mahesh Wodayar, Additional Government Advocate,. For the Respondent : Y.V. Raviraj for G Rabinathan and M. Thirumalesh. ORDER:- The order of the court was made by N. KUMAR J.- The State has preferred this revision petition against the order passed by the Karnataka Appellate Tribunal (for short, hereinafter referred to as the KAT ) which has set aside the revisional authority's order revising the assessment orders passed under the Karnataka Sales Tax Act, 1957 for the years 1999-2000 and 2000-01. 2. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t was not part of the consideration relating to works contract. The assessing authority accepted the said claim. However, the revisional authority reviewed the assessment order and held that the assessment order involves error prejudicial to the interest of the Revenue on the ground that the payment received by the assessee for compression of the erection period were also payment received for execution of the works contract for erection of radial crest gates and therefore the said payment could not have been left out of tax and accordingly ordered the left out consideration shall also be brought to tax. 4. Aggrieved by the said order the assessee preferred an appeal before the Tribunal. The Tribunal set aside the order of the revisional ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7(6) of the Act, the tax is payable on the total consideration of the contract, which includes the price of both the contracts. Therefore he submits the impugned order is erroneous and requires to be set aside. 6. Per contra, the learned counsel for the assessee submitted that the condition precedent for attracting section 17(6) of the Act is, there should be a liability to pay tax under section 5B. If there is no liability to pay tax under section 5B then section 17(6) is not attracted. Elaborating the contention he submitted that in the subsequent contract entered into between the parties the amount paid is towards hire charges. There is no sale of goods involved in the said contract. Once there is no sale of goods section 5B, is not a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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