9911796707
TMI Blog2023 (1) TMI 338X X X X Extracts X X X X X X X X Extracts X X X X ..... the revisionist - assessee (hereinafter referred to as "the Assessee" for brevity) is Rs. 1,11,930/- on the ground that it is in violation and ignoring the provisions of Sub-Section 3, 7 and 9 of Section 3 of the Uttarakhand Value Added Tax Act, 2005 (hereinafter referred to as "the Act" for brevity). The Assessee is a civil contractor. For a period between 01.10.2005 and 31.03.2006, he received a sum of Rs. 6,21,570/- from the contractee department out of which Rs. 4,61,670/- was against the earth work carried out by the Assessee-revisionist. The case of the revisionist is that since the amount received by him for execution of work contract, which involved sale goods only for Rs. 1,59,900/-, he is entitled to deduction of 30% as labour cha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e taxable quantum of revisionist at Rs. 1,11,930/- which is below the taxable limit as provided under Section 3(7) of the Act, but the Second Appeal was dismissed by the Commercial Tax Tribunal vide Annexure 4 to the writ petition. 5. At this stage, there is no dispute that the petitioner was awarded a work contract of Rs. 6,21,570/- out of which a sum of Rs. 4,61,670/- was for hill side cutting and earth work and as Assessee - revisionist did not involve in the sale of goods or services, it was not considered. The question that remains to be decided in this case is whether the Assessee-revisionist's income of Rs. 1,11,930/- is liable to be taxed, in view of 30% remission for labour charges. 6. Mr. S. K. Posti, learned Senior Counsel appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tric Supply Co. Ltd. v. State of Assam [(1989) 3 SCC 709] the Hon'ble Supreme Court observed, "the Courts strongly lean against any construction, which tends to reduce a statute to a futility". The provision of a statute must be so construed as to make it effective and operative, on the principle "ut res magis valeat quam pereat. 8. Thus, it is clear that the amount of Rs. 4,61,670/- is not liable to be included in the turnover of the Assessee while calculating the taxable quantum. This conclusion arrived at by the Authorities is no not in dispute at this stage. Sub-Section 3, 7 and 9 of Section 3 of the Act provides as follows:- 3. Incidence of tax. (3) Subject to provisions of sub-section (4) or sub-section (5) as may be applicable, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - (a)goods imported by him form outside Uttaranchal after furnishing to selling dealer a declaration under subsection (4) of section (8) of the Central Sales Tax Act, 1956; (b)goods purchased or imported by furnishing any `declaration or certificate prescribed under any provision of this Act; (c)goods manufactured by him by using the goods referred to in sub-clause (i) or sub-clause (ii); (c) Where the amount specified in, or notified under clause (a) is altered during an assessment year, the tax payable by a dealer under this section shall be computed as follows:- (i) on the turnover relating to the period prior to such alteration, as though the amount specified in or notified under clause (a) had not been altered; and (ii) on the remainde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ales during any period which remains after deducting therefrom, (a) sales of goods declared as exempt from tax in Schedule 1 (b) sales of goods which are shown to the satisfaction of the assessing authority to have taken place- (i)in the course of inter-state trade or commerce, or (ii) outside the State of Uttaranchal other than by way of sale, or (iii)in the course of export of the goods out of the territory of India Explanation: section 3, section 4 and section 5 of the Central Sales Tax Act, 1956 shall apply for determining whether or not a particular sale or purchase has taken place in the manner indicated in sub-clause (i),sub-clause(ii)or sub-clause (iii). (c) in case of turnover of sales in relation to works contract certain deductio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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