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TMI Blog2019 (1) TMI 1420X X X X Extracts X X X X X X X X Extracts X X X X ..... f the revenue that sub-contractors are not registered dealers and neither it is their case that they have not paid taxes or AST. In fact, the finding rendered by the Tribunal on this aspect is clearly in favour of the petitioner and against the revenue. The finding rendered by the Tribunal that the petitioner should file Form XXXVII-B is wholly without jurisdiction and beyond the scope of the appeal filed by the revenue - tax case revisions are allowed - decided in favor of petitioner. - Tax Case (Revision) Nos.32 and 33 of 2013 - - - Dated:- 3-1-2019 - Mr. Justice T.S. Sivagnanam And Mr. Justice N. Sathish Kumar For the Petitioner : Mr.S.Ramanathan For the Respondent : Mr.V.Haribabu Additional Government Pleader COMMO ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... actions of the Principal and Agent would be applicable to main contractor and sub contractor. When the Agent is selling the goods of the principal and on behalf of the principal whereas the sub contractors are independently dealing the goods and not in the name of the main contractor? 3.Heard Mr.S.Ramanathan, learned counsel for the petitioner and Mr.V.Haribabu, learned Additional Government Pleader for the respondent/revenue. 4.The assessment for the relevant years was completed under the provisions of the TNGST Act vide orders dated 28.02.2005 (2003-04) and 02.01.2006 (2004-05). The petitioner/dealer claimed exemption in respect of payment made to sub contractors during both the assessment years. The Assessing Officer verified the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orks contract and hence the deemed sale value of such goods become the taxable turnover of the sub-contractor only. The principal agent relationship will be apply only in cases where there is buying and selling as per the explanation I-B of Sec.2(n) which define 'SALE' and it will not be applicable to the main contractor and sub contractor as there is no buying or selling is involved in this case. 5.Aggrieved by the same, the revenue filed an appeal before the Tribunal. We have perused the grounds of appeal filed before the Tribunal by the revenue and the only contention raised by the revenue is that the entire job is accomplished by the main contractor partly by them and partly by the sub-contractor and the main contractor is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ontractor. Therefore, the explanation will not be applicable. Furthermore, the Assessing Officer himself has granted exemption on the payments made to sub contractors and therefore, it would not form part of the taxable turnover and hence, no additional sales tax can be levied on the said turnover as the charging section, namely, Section 2(1)(aa) clearly reads that the additional sales tax is leviable only on the taxable turnover. Further, the petitioner contended that the payments made to the sub contractor is the turnover of the sub contractor and those sub contractors are registered dealers and the turnover has been assessed to tax and additional sales tax at the hands of the sub contractor and therefore, levying additional sales tax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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