9911796707
TMI Blog2012 (10) TMI 966X X X X Extracts X X X X X X X X Extracts X X X X ..... of such material by the contractor to the other. The entire transaction was a clear works contract and did not involve any sale. The petitioner constructed the entire works according to the specification contained in the agreement and in construction thereof received the payment. In both the agreements there was neither a contract to sell the material used in the construction, nor does the property passed therein as movable property. After the date of agreement of contract, the petitioner had purchased material for amount of 2,01,950 to which he placed list which were exempted from tax. In respect of purchase of 2,73,522 no evidence was placed, therefore, the material of 2,73,522 was treated as inter-State purchase for using in works contra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ods involved in the execution of above contracts and payment in lieu of labour charges was shown separately in the cash book and ledger account. Accordingly, the labour charges were paid by the petitioner, which should have been deducted from the value of the receipts of the contract. He also submits that all electrical and sanitary works were done by the petitioner. So, the same should be covered in the composite scheme under section 7D of the Act. The order passed by the assessing officer is against the provision of the law as there is no such provision by which the demand of composite fee of ₹ 17,163 under section 7D of the Act would be created in proceedings under rule 41(7). Further, the petitioner was assessed the tax of ₹ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ess to mention that a building contract can also be an indivisible contract. In the instant case, the entire works contract was a composite and indivisible one and in fact what was agreed there and intended between the parties was not to supply the materials in the course of contract, but as and when such material (electrical and sanitary) were embedded in contractual work involved, then they became the property of the other party. Hence, there would be no question of sale of such material by the contractor to the other. The entire transaction was a clear works contract and did not involve any sale. The petitioner constructed the entire works according to the specification contained in the agreement and in construction thereof received the ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
