9911796707
TMI Blog2007 (5) TMI 18X X X X Extracts X X X X X X X X Extracts X X X X ..... the impugned judgment & order 22-6-2006 of the Jharkhand High Court in Writ Petitions Nos. 482,467,493 and 466of 2005. 3. Heard learned counsel for parties and perused the record. 4. The respondent, a company registered under the Indian Companies Act, 1913 is engaged inter alia in the execution of works contracts of designing, supplying, installation, fabrication, testing and commissioning of air- conditioning plants. The assessing authority acknowledged that the contracts in question were works contracts and the material supplied in the execution of the works contracts only are liable to be taxed. However, the Sales Tax Authorities had sought to levy a uniform rate of tax @ 16% holding that in the instant case the incidence of tax is co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... observed that the value of the goods involved in the execution of a works contract will have to be determined after taking into account the value of the entire works contract and deducting therefrom the charges towards labour and services which would cover - (a) Labour charges for execution of the works; (b) Amount paid to a sub-contractor for labour and services; (c) Charges for planning, designing and architect's fees; (d) Charges for obtaining on hire or otherwise machinery and tools used for the execution of the works contract; (e) Cost of consumables such as water, electricity, fuel, etc. used in the execution of the works contract the property in which is not transferred in the course of execution of a works contract; and (f) C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e] deduction under sub-clause (i) of clause (a) of sub-section (1) of section 21 on account of labour charges in the case of works contract from gross turnover" shall be equal to the following percentages." 11. The aforesaid provisions have been adopted by the State of Jharkhand vide notification dated 15-12-2000 and thus are applicable in the State of Jharkhand. 12. Interpretation of the amended Section 21(1) and the newly substituted Rule 13A fell for consideration of a Division Bench of the Patna High Court in the case of Larsen & Toubro Ltd. v. State of Bihar, 134 STC 354. The Patna High Court in the said decision observed as under: "Rule 13A unfortunately does not talk of "any other charges". Rule 13A unfortunately does not take int ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sp; ............ In our considered opinion sub-clause (i) of clause (a) of section 21(1) read with rule 13A of the Rules did not make sub-clause (1) fully workable because the manner and extent of deduction relating to any other charges has not been provided prescribed by the State." 13. We fully agree with the view taken by the Patna High Court in the aforesaid decision. It is not merely the labour charges which are deductible from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o years from the date of communication of such order to the assessing authority. How ever, the assessment was not concluded and fresh assessment on remand was made on 27th November, 2004 i.e. after more than six years of communication of the said order. Hence, it was clearly time barred. 16. From the records, it appears that the appellate order passed on 31st August, 1998 was communicated to the assessing authority vide Memo No. 2177 dated 5th November, 1998. The respondent obtained a certified copy of the same in January, 1999. Memo No. 204 dated 6th August, 2003, as referred to by the counsel for the State is the second time communication, which was only a reminder. Thus, the appellate order having been communicated to the assessing auth ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
