2012 (8) TMI 940

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..... se revisions: (1) Whether, in the facts and circumstances of the case, the Appellate Tribunal is right in sustaining the levy of sales tax at the rate of 15 per cent. on the ducting works contract executed by the petitioner at the customer's site treating the transaction as supply and installation of humidification plants falling under entry 3 of the Fourth Schedule to the TNG ST Act ? (2) Whether the Appellate Tribunal is right in treating the ducting works contract executed by the petitioner as an outright sales of duct ignoring the fact that duct cannot be construed as a finished goods or chattel and a duct comes into being only after it is erected or installed to an immovable property ? (3) Whether the Appellate Tribunal i .....

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..... The assessing officer however rejected the assessee's contention and brought the turnover to tax. The officer pointed out that the goods were manufactured by the assessee themselves by employing outside labour, being a different commodity, they were liable to be assessed. The reasoning of the assessing officer in respect of other tax case revisions are also one and the same. Aggrieved by the same, the assessee went on appeal before the Appellate Assistant Commissioner. By a common order, the first appellate authority rejected the assessee's contention. Aggrieved by this, the assessee went on further appeal before the Sales Tax Appellate Tribunal. The Tribunal held that even though the goods were specifically designed for the partic .....

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..... rately and that 95 per cent. of the value of the materials was received as advance. The assessee also produced sample of duct made which shows that it is not just the bending of all the edges of the sheet had resulted in the duct; on the other hand, the length of the sheets are cut into smaller one, that each one is fixed to another by the process of inserting one to the other through the slit made in the edges, so that making the duct is complete. On dismantling the duct, the cut edges would remain as it is, we do not find that there is in fact a reversible process to bring the duct to the original shape of G. A. sheets. In the circumstances, we reject the contention of the assessee that the work undertaken by the assessee was a simple com .....

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