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TMI Blog2012 (9) TMI 910X X X X Extracts X X X X X X X X Extracts X X X X ..... d RCC overhead tanks, encasing the pipes with the steel mesh, trenching and excavating along the routes. Hence, the works contract entered into by the appellant has to be treated as a composite contract involving two or more of the above categories of works falling under entry 44 of the Sixth Schedule. Accordingly, the first substantial question of law is held against the appellant. The Commissioner has taken suo motu revision under section 22A(2) of the Act and order has been passed on July 2, 2009. The appeal order dated December 12, 2003 merged with the revisional order dated February 24, 2007 and the Commissioner has passed the revisional order within a period of four years as required under section 22A(3) of the Act. There is no merit in the contention of the appellant that the revisional order passed by the Commissioner is barred by limitation. Hence, issue No. 2 is also held against the appellant. Appeal dismissed. - STA No. 111 of 2009 - - - Dated:- 27-9-2012 - SREEDHAR RAO K. AND MANOHAR B., JJ. For the Appellant : Smt. H. Vani For the Respondent : Smt. S. Sujatha, Additional Government Advocate, The judgment of the court was delivered by B. MANO ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as per the assessment orders dated June 10, 2003 and July 10, 2003 for the assessment years 2000-01 and 2001-02 respectively. 3. Being aggrieved by the assessment order dated June 10, 2003 and July 10, 2003 for the assessment years 2000-01 and 2001-02, the appellant preferred appeals before the Joint Commissioner of Commercial Taxes (Appeals) (hereinafter referred to as, the first appellate authority ) in KST. AP. Nos. 118 and 149/2003-04 contending that the works awarded to the appellant by BWSSB is for laying clear water transmission mains and the steel plates are provided to the appellant by the BWSSB at free of cost and the appellant has fabricated the steel pipe out of the steel plates supplied by the BWSSB and laid steel pipes as water transmission mains. Further excavating work, preparation of the trenches and back filling of trenches and construction of the bridges were only incidental and ancillary to the main contract of laying the clear water transmission mains. The predominant intention and nature of the contract is to lay the pipeline and it squarely falls within entry 20(ii) of the Sixth Schedule to the Act. The first appellate authority by its order dated Decemb ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rity found that the order passed by the revisional authority is prejudicial to the interest of the Revenue and issued notice to the appellant under section 22A(2) of the Karnataka Sales Tax Act proposing to set aside the order passed by the first appellate authority dated December 12, 2003 as well as the revisional authority dated May 31, 2005. The appellant has filed the detailed objections to the said proceedings. The Commissioner for Commercial Taxes after considering the matter, by its order dated July 2, 2009 set aside the order passed by the first appellate authority as well as the revisional authority thereby restored the orders passed by the assessing authority dated June 10, 2003 and July 10, 2003 for the assessment years 2000-01 and 2001-02 and held that works contract undertaken by the appellant falls under entry 44 of the Sixth Schedule. The appellant being aggrieved by the order dated July 2, 2009 passed by the Commissioner for Commercial Taxes has preferred this appeal. 5. The above appeal has been admitted to consider the following substantial questions of law: (i) Whether the Commissioner could have opined that the turnover of the assessee relating to laying ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y BWSSB to the required diameter and thickness and laying and filling the pipelines from Harohalli to Bangalore city. The said work associated with civil works including construction of the pipe bridge, construction of pedestal supports, anchor block, valve chambers and including construction of the causeway across the river with approach road. Since the pipes are of considerably large size and are heavy, construction of structure involving civil work to give strength to the pipes laid down is more of a necessity than the additional work. These civil works are part and parcel of laying pipe work. In other words, the civil works are the incidental works carried out by the appellant while laying the pipelines. The reasoning of the Commissioner that the work carried by the appellant falls under entry 44 of the Sixth Schedule is contrary to law and sought for allowing the appeal. 7. On the other hand, Smt S. Sujatha, learned Additional Government Advocate, argued in support of the order passed by the Commissioner for Commercial Taxes and contended that as per the works contract, the appellant undertakes the work of not only laying the pipelines, but also fabrication of pipes from th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d pipe (approximately 44 mm long); (d) Fabrication, laying and jointing of pipe specials; (e) Procurement and erection of valves; (f) Construction of reinforced concrete pipe bridges over Bhima and Arkavathi rivers (Bhima bridge 54 m long and Arkavathi bridge 189 m long); (g) Construction of pipe saddle supports, thrust blocks, and anchor blocks; (h) Construction of one-way surge tank (reinforced concrete overhead tank of 20 m. diameter including inlet and outlet connections); (i) Construction of valve chambers. 10. The reading of description of the works contract makes it clear that the work carried on by the appellant is a composite contract. It falls under entry 44 of the Sixth Schedule to the Act. The contention of the appellant is that the work carried out by the assessee is not a composite contract. It is a single works contract of fabrication of the pipe out of steel plates supplied by the BWSSB and all other works are ancillary to it. The predominant intention and nature of the work is to laying down the pipes. Hence, it falls under entry 20(ii) of the Sixth Schedule. On a careful examination of the works contract awarded by the BWSSB, we are of the vi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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