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TMI Blog2016 (8) TMI 475X X X X Extracts X X X X X X X X Extracts X X X X ..... appeals, first to the first Appellate Authority and thereafter to the Tribunal are available and upon which further appeal may be available with the High Court on substantial question of law, learned counsel for the petitioner submitted that the issue decided by the competent authority in the impugned order is squarely covered by a judgment of this Court dated 11.09.2015 in case of State of Gujarat v. Shandong Tiejun Electric Power Engineering Company Ltd., passed in Tax Appeal No.614 of 2015. The authority, therefore, could not have taken a different view ignoring the decision of the High Court. Counsel clarified that except this issue which is already decided by the High Court, the petitioner raises no further dispute or contentions. In t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cuting a works contract entered into with Adani Power Limited in SEZ area. Pursuant to the application under section 80 of the Act made by the assessee, the determining authority had held that the assessee was not liable to pay tax on the sale of goods in the SEZ to Adani Power Limited by virtue of section 5A of the Value Added Tax Act, which provides for zero rated sale for the purpose of the Act and tax credit on the purchase related to sale of goods to the Developer, Codeveloper or unit of Special Economic Zone as defined in the Gujarat Special Economic Zone Act, 2004. The determining authority, however, observed that the deemed sale of goods is considered to be sale in the execution of a works contract as per the definition of sale unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es have adopted an adamant and hypertechnical approach in insisting upon endorsement of the customs authority on the invoices itself. The appellate authority has failed to appreciate the fact that it is not possible to abide by subrule (2A) of rule 42 of the rules having regard to the nature of the contract which is a works contract wherein the goods which are sold to the buyer, are used in the execution of the works contract and it is only after execution that the invoices are raised. This court is, therefore, in agreement with the view adopted by the Tribunal that rule 42(2A) of the rules cannot be held to be mandatory in nature and that the endorsement on the purchase bills obtained by the respondent assessee is sufficient compliance wit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er than those specified in Schedule III to the Act, luxury tax, entertainment tax payable on sales and other transactions within the areas specified in subsection (1) of section 21 of the Act. By virtue of a non obstante clause contained in section 22 of the SEZ Act, such provision would have effect notwithstanding anything contained in any other law from the time being in force." 8. In the light of the exposition of law contained in the above decision, in view of the provisions of section 21 of the Gujarat Special Economic Zone Act, the assessee is even otherwise entitled to exemption of tax on sale or purchase of goods within the SEZ area. Under the circumstances, it cannot be said that the impugned order passed by the Tribunal suffers ..... X X X X Extracts X X X X X X X X Extracts X X X X
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