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TMI Blog2025 (2) TMI 1X X X X Extracts X X X X X X X X Extracts X X X X ..... .03.2023 an appeal would lie to the Central Sales Tax Appellate Authority, but after the amendment made by Finance Act No. 08 of 2023 w.e.f. 31.03.2023, appeal would lie to this Tribunal, namely, The Customs, Excise & Service Tax Appellate Tribunal. The assessment order was passed under the provisions of the Delhi Sales Tax on Works Contract Act, against which the appellant filed an appeal under section 43(1) of the Delhi Sales Tax Act before the Deputy Commissioner (Appeal) as the provisions of section 16(1) of the Delhi Sales Tax on Works Contract Act make applicable the provisions of appeals under the Delhi Sales Tax Act. A further appeal was filed by the appellant before the Appellate Tribunal under section 43(2) the Delhi Sales Tax Act. The said appeal was dismissed by order dated 30.06.2014. The order dated 30.06.2014 was certainly not passed by the Appellate Tribunal under the provisions of the CST Act - the appellant did have a remedy against the order dated 30.06.2014 of the Appellate Tribunal under section 45 of the Delhi Sales Tax Act by requiring the Appellate Tribunal to refer the matter to the High Court on any question of law arising out of such order, but that rem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for various customers at Delhi for a total value of Rs. 2,59,99,073/-. 3. The Delhi Sales Tax on Works Contract Act is an Act to levy and collect the taxes on the transfer of property in goods involved in the execution of works contract in the National Capital Territory of Delhi. 4. Section 3 provides that every dealer whose turnover of sales during the year exceeds the taxable quantum shall be liable to pay tax on the taxable turnover effected by the dealer. 5. Section 4 deals with the liability of the dealer and it is as follows: "4. Liability of the dealer. - Subject to the provisions of this Act and the rules made thereunder, a tax shall be levied on the taxable turnover involving transfer of property in goods in the execution of works contract commenced or continued for execution on or after the commencement of this Act, whether such contract was entered into prior or subsequent to such commencement." 6. Section 5 deals with levy of tax and it is as follows: "5. Levy of tax. - (1) Save as provided in sub-sections (2), (3), (4), (5) and (6), every dealer shall file return and pay tax under this Act for each year on his taxable turnover of sales or transfer of property ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of tax at source. - (1) Every person, other than individual and Hindu undivided family responsible for making payment to any dealer hereinafter this section referred to as "the contractor" for discharge of any liability on account of valuable consideration payable for the transfer of property in goods whether as goods or in some other form in pursuance of a contract, shall at the time of credit of such sum to the account of the contractor or at the time of making such payment to the contractor either in cash or in any other manner, deduct an amount equal to two percent from such sum towards the tax payable under this Act." 9. Section 11 provides that no dealer shall, while being liable to pay tax under the Act, execute a works contract unless he possesses a valid certificate of registration. 10. Section 16 provides that certain provisions of the Delhi Sales Tax Act, including provisions relating to appeals, revisions and reference shall be applicable. 11. The appellant had obtained registration under the Delhi Sales Tax on Works Contract Act. 12. An assessment order for the Assessment Year 2002-03 under the Delhi Sales Tax on Works Contract Act was passed by the officer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the order of the assessing authority. The Deputy Commissioner (Appeal), by order dated 11.03.2005, rejected the appeal and the relevant portions of the order are reproduced below: "It was stated that during the year 2002-03 the dealer filed sales, return under Delhi Sales Tax on works, contract act totaling of Rs. 79255/- for the assessment year 2002-03 including sales amounting to Rs. 25919818/-which had been made from their manufacturing unit at Ghaziabad but the AA wrongly taxed the entire amount of works contract of Rs. 25999073/- disregarding the fact that an amount of Rs. 25919818/- were interstate sales made by the Ghaziabad unit on which interstate sales tax had already been paid at Ghaziabad and therefore not liable for tax under Delhi works contract Act and pleaded to set aside the same. The Ld. Counsel also cited various rulings saying that the supply of lifts from their factory at Ghaziabad to the work sites at Delhi are interstate sales under Central Sales Tax Act, 1956 and therefore not liable for tax at Delhi. I have gone through the submission made by the appellant and also the assessment proceedings. As per the assessment record, the appellant dealer after resp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dated 11.03.2005 passed by the Deputy Commissioner (Appeal), the appellant filed an appeal before the Appellate Tribunal under section 43(2) of the Delhi Sales Tax Act. The Appellate Tribunal also dismissed the appeal by order dated 30.06.2014 and the observations are as follows: "15. Having heard the respective counsels for the parties, perusal of the impugned orders, default assessment, grounds of appeal and the written submissions filed by the parties along with authorities cited, this Tribunal is of the considered view that appellant cannot be allowed to take somersault to his own admissions and action because of levy of tax in term of composite scheme u/s 6 of the of the Delhi Sales Tax on Works Contract Act, 1999 which permits in term of proviso that a dealer who makes inter-state purchases of the material used in the execution of the works contracts, on the strength of his registration certificate, shall not be entitled to opt for composition of tax under this section. The facts remains in accordance to the appellant himself that appellant is a registered dealer as composite dealer as is clear from the assessment order that appellant dealer who has opted for tax under sect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessing authority, the appellant is debarred from invoking clause 4 of Sec. 5 of the DST on Works Contracts Act, 1999 as it was appellant in the present case who opted for composition scheme with a knowledge that thereafter he would not be entitled for tax exemption as other available under Clause 4 of Sec. 5 to an ordinary registered dealer. The appellant cannot be allowed to take benefit of somersault of denial of registration as composite dealer because of irregular procedure applied while granting him option for registration as composite dealer." (emphasis supplied) 16. This appeal was filed by the appellant before the Central Sales Tax Appellate Authority under section 20 of the Central Sales Tax Act, 1956 the CST Act. This appeal has thereafter been transferred to this Tribunal by virtue of substitution of section 19 of the CST Act w.e.f. 31.03.2023 by Finance Act No. 8 of 2023. 17. Section 20 of the CST Act deals with Appeals and it is as follows: "20. Appeals. - (1) An appeal shall lie to the Authority against any order passed by the highest appellate authority of a State under this Act determining issues relating to stock transfers or consignments of goods, in s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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