9911796707
TMI Blog2012 (7) TMI 859X X X X Extracts X X X X X X X X Extracts X X X X ..... irst respondent, all dated January 23, 2012 are quashed and the Revenue-Commercial Tax Department is directed to refund the amount of tax deposited by the APGENCO by way of TDS, deducted from the bills payable by the APGENCO to the petitioner, in respect of the assessment years 2007-08, 2008-09 and 2009-10, within four weeks from the date of receipt of a copy of this order. Costs of ₹ 10,000 (ten thousands) in each of the writ petitions are awarded, payable by the State to the petitioner, also within four weeks from the date of receipt of a copy of this order. Writ petitions allowed - Writ Petition Nos. 4060, 4065,4204 of 2012 - - - Dated:- 31-7-2012 - GODA RAGHURAM AND RAMACHANDRA RAO M.S. , JJ. ORDER:- The order of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mmissioning of the entire plant and equipment, including comprehensive insurance. It filed monthly returns before the assessing authority claiming total exemption and declared a nil taxable turnover. The contractee-APGENCO, as per instructions of the respondents, however effected tax deduction at source (TDS) at 2.8 per cent from the bills payable to the petitioner and remitted the same to the Department. Since the turnover of the petitioner-company is not exigible to tax in view of the above circumstances, the petitioner was claiming refund from the Commercial Tax Department. There being no response, the petitioner filed W.P. Nos. 32949, 32951 and 32963 of 2010 for a direction to the respondents to refund the TDS amounts deducted from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Appellate Deputy Commissioner disposed of the petitioner's appeal clearly concluding that the contract is purely a labour and service contract not involving any transfer of material and no tax liability is attracted on this turnover; that the contractee-APGENCO never added four per cent tax in the schedules as verified from the agreement; and that rule 3(a) and (b) applies only to cases where tax is added separately to the estimated value of the contract; that on perusal of the contracts between the petitioner and the APGENCO there was no inclusion of AP VAT tax and any other State taxes; and that the TDS deduction made by the contractee and deposited with the Department on the basic value of the price did not include any taxes. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... emanding the appeal directed the Commercial Tax Officer to verify the purchase order and found that GENCO never added four per cent tax in the schedule as verified from the agreement. The point to be considered by undersigned as to whether dealers executed the works for Government or local authorities and whether rate of four per cent is added separately to the estimated value of the contractee. In this connection, as per the records available the dealers are not under composition and executed works for AP GENCO, where the tax was collected, in excess of the liability. Even as per the conditions in para 3 of the agreement, all other taxes shall be payable either way against proof of documentary evidence. It means the Department has issued p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ioner but also in careless exercise of jurisdiction and without due consideration of the findings recorded by the appellate authority vide his order dated October 27, 2011. In the circumstances, the writ petitions are allowed with costs. The impugned orders of the first respondent, all dated January 23, 2012 are quashed and the Revenue-Commercial Tax Department is directed to refund the amount of tax deposited by the APGENCO by way of TDS, deducted from the bills payable by the APGENCO to the petitioner, in respect of the assessment years 2007-08, 2008-09 and 2009-10, within four weeks from the date of receipt of a copy of this order. Costs of ₹ 10,000 (ten thousands) in each of the writ petitions are awarded, payable by the State ..... X X X X Extracts X X X X X X X X Extracts X X X X
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