9911796707
TMI Blog2017 (5) TMI 1549X X X X Extracts X X X X X X X X Extracts X X X X ..... saic tiles. 3. In the case of the respondent-dealer, the Assessing Officer held that the dealer has not maintained proper accounts and taking note of the payments effected by the dealer came to the conclusion that 70% of the amount paid to the dealer under the works contract was towards the cost of manufacturing mosaic tiles and therefore, liable to be taxed. 4. The Revenue did not dispute the fact that the raw materials which were utilised for the purpose of manufacturing mosaic tiles had suffered tax. Their contention is that the mosaic tile is commercially a distinct product and therefore, is liable to be taxed. 5. As against the order of assessment, the dealer preferred an appeal to the Appellate Assistant Commissioner. The Appellate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... evertheless, again, as pointed out by the Supreme Court, "the dividing line between the two types of contract is somewhat hazy and thin partitions do their bounds divide and such distinction is very much real and the court has to perform at times the ingenious exercise of distinguishing one from the other". The assessing officer as well as the Board of Revenue leaned heavily on the fact that the contract provides for a payment of 65 per cent of the total amount on delivery of tiles and that according to them, represents the value of tiles. We have already noticed that except for a guesswork, no tangible material was available before the assessing officer to arrive at that conclusion. The comparison of the laying of mosaic tiles with fixing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amount received towards the contract as sale of tiles taxable at 16% and further held that the case is covered by the decision of this Court in S.Chandrasekaran wherein it was held that it is a work contract and in such a case, the dealer comes under Section 3B of the TNGST Act and is eligible for various deductions and when the dealer is eligible for various deductions, he is also eligible for deductions under Section 3B-2(b) and also other deductions that are available under Section 3B. After taking into consideration the Forty Sixth amendment to the Constitution of India and the decision in the case of Tamil Nadu Mosaic Manufacturers Association Vs.State of Tamil Nadu (97 STC 503) held that the amount so deductible would have to be dete ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for ascertaining the rate of tax that has to be imposed on the various components. While testing the correctness of the order passed by the Appellate Assistant Commissioner with regard to the direction remanding the matter to the Assessing Officer held that the contentions raised by the respondent-dealer was acceptable, as the Appellate Assistant Commissioner has given a categorical finding that the dealer has maintained separate stock account for various raw materials utilized for the purpose of execution of works contract. 9. Further, the Tribunal took note of the fact that the raw materials utilized for the execution of works contract have been purchased from within the State and suffered tax and the items used for execution of works co ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
