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TMI Blog2015 (5) TMI 171X X X X Extracts X X X X X X X X Extracts X X X X ..... ct that the work assigned to the petitioner-assessee cannot be segregated and its main activity was construction/establishing plant & machinery of the sewerage treatment plant and that apart laying down pipelines with material which falls under the item/category 3 of the notification. It is also apparent that the work is a composite one and neither from the contract nor the activity undertaken by the petitioner-assessee, he has been able to segregate for the amount incurred by it on different activities separately. - On reading of the work assigned to the petitioner, and the Notification, in my view, there was composite agreement of contract and the major activity being of laying of pipeline with material, water treatment plant etc., then i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e contract as provided under item/category No.2 of the said notification and accordingly submitted application for issuance of Exemption Certificate to this effect. However, the Assessing Officer (AO) was of the view that looking to the nature of the contract i.e. installation of plant machinery including PSPO water treatment plants, laying of pipe line with material, it falls under the item/category 3 of the above mentioned notification and as such, is liable to charge exemption fees @ 2.25% and accordingly passed the assessment order. 3. The said assessment order was challenged in appeal before the Deputy Commissioner (Appeals) [DC(A)], who too, after analyzing the contract with RUIDP, upheld finding of the AO holding that it falls w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ompanies Limited Vs. State of Karnataka: [2007] 7 VST 691 (Karn); Bharat Vijay Mills Ltd. Vs. Commissioner of Commercial Taxes: 1992 (85) STC 23. 6. Per-contra, ld. counsel for the respondent-Revenue contended that the terms of the contract clearly envisage that it is nothing but water treatment plant with some other activities which are part of water treatment plant and therefore, the AO as well as both the appellate authorities came to a definite finding of fact about the assessee falls under category 3 and the exemption fee being applicable @ 2.25% under the said notification. He contended that it is basically a question of fact and after analyzing the material and evidence on record, the authorities below have come to a finding of fa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ated 11/8/2006 is also quoted herein under: Item No. Description of work contract Rate of exemption fee % of the total value of the contract 1. Work contract relating to dyeing, printing, processing and similar activities 0.25% 2. Work contract relating to building, roads, bridges, dames,canals,sewerage system 1.50% 3. Work contact relating to installation of plants and machinery including PSPO,water treatment plants, laying on pipe line with material 2.25% 4. Any other kind of works contract not c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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