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TMI Blog2017 (2) TMI 1210X X X X Extracts X X X X X X X X Extracts X X X X ..... mount towards labour charges could be held admissible for deduction, by virtue of Rule-9(3) of the Rules, in a case where the amount payable towards labour charges are not separately shown or that the accounts maintained by the dealer are not worthy of credence - Since in the facts of the present case this Court finds that the required exercise warranted at the level of the authorities to deal with the liability of the assessee to pay VAT with reference to the provisions contained under Rule-9 of the Rules, have not been under taken, as such, the Tribunal was not justified in rejecting the claim of the assessee. The authorities were not justified in denying the benefit admissible to the assessee under Rule-9(1)(d) of the Rules - revision ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the works contract:- (d) all amounts representing the value of service and labour and profit thereon; (3) Where accounts maintained by the contractor do not show separately the value of labour and services and amount of profit accrued on such labour and services, or accounts maintained by the dealer are not worthy of credence or if the dealer has not maintained accounts, for the purpose of determining turnover of goods in which transfer of property in goods has taken place, in cases other than those mentioned in the table below, an amount, representing twenty percent of gross amount received or receivable, shall be deducted towards labour and services and amount of profit accrued thereon and in the cases described or mentioned i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e that appropriate accounts, in respect of the figures reflecting labour works were not maintained and furnished. 6. I have heard learned counsel for the parties and have perused the materials brought on record. 7. Rule-9 regulates determination of turnover in a works contract. It is clear that the amount representing the value of service and labour and profit thereon is liable to be deducted if it is included in the gross amount received in respect of works contract. The assessee herein is works contractor and has submitted his books of account in which he has admitted liability to pay tax amounting to ₹ 1,04,60,958/-. The assessing authority has observed that a show cause notice was issued to the assessee, stating that in resp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rule-9(1) (d) or 9(3) of the Rules. Unless the matter is examined from that perspective, the authorities would not be justified in rejecting the figures representing the value of service and labour and profit in the books of account. 9. Since in the facts of the present case this Court finds that the required exercise warranted at the level of the authorities to deal with the liability of the assessee to pay VAT with reference to the provisions contained under Rule-9 of the Rules, have not been under taken, as such, the Tribunal was not justified in rejecting the claim of the assessee. 10. The question of law, formulated for consideration in this revision is answered by holding that in the absence of any discussion and finding based u ..... X X X X Extracts X X X X X X X X Extracts X X X X
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