Log in Register

Login to your account

Username *
Password *
Remember Me

Create an account

Fields marked with an asterisk (*) are required.
Name *
Username *
Password *
Verify password *
Email *
Verify email *
Captcha *
View more blog entries

Consult Construction

Consult Us For Construction

Case law on levy of tax on transfer of property in goods involved in the process of Job Work

Posted by on in VAT
  • Font size: Larger Smaller
  • Hits: 472
  • Subscribe to this entry
  • Print
  • Report this post


Haryana Value Added Tax Act, 2003 – Levy of tax on transfer of property in goods involved in the process of Job Work - Whether the Tribunal was justified in upholding the levy of tax on chemicals/consumables and entire value of dyes in the process of job work of dyeing of fabric by treating that property in the goods has passed on to the principals – validity of Tribunal ruling that property in the goods i.e. dyes and chemicals is transferred to be principals in the job work of dyeing the fabric - Works Contract - quantity of goods on which tax is to be levied.

HELD - what is taxable under the HVAT and CST Act is the value of the goods which get transferred to the customer in the execution of works contract either as goods or in any other form and not the value of goods used or consumed in the execution of the works contract - The tax on the entire value of chemicals consumed during the process of dyeing and job work are not to be included for the purpose of levy of VAT as substantial portion of the same is not transferred to the principal eventually as they are washed out and do not remain embedded on the textile or fabric - it would be essential to determine the value of consumables transferred in the goods on which tax is leviable.

While determining the actual loss of chemicals, dyes and colours where the fabric or textile undergoes various processes depends upon factual aspect which can be considered only by the Assessing Officer where parties can produce evidence in respect of their respective claims - The matter is remanded to the Assessing Officer to work out the details of quantity of chemicals, dyes and colours that would get washed out in the process of dyeing and printing of fabrics undertaken by the appellant -

the Assessing Officer would be at liberty to proceed in the matter for adding the percentage of chemicals, dyes and colours in the value of the turnover which are retained or embedded on the textile or fabrics, as the case may be - the appeals are disposed of.

Rate this blog entry:
Trackback URL for this blog entry.


  • No comments made yet. Be the first to submit a comment

Leave your comment

Guest Tuesday, 17 September 2019

Like us on facebook

Twitter Feed

ConsultC Please find the latest presentation given to select gathering of real estate developers at Kolkata on West Bengal H… https://t.co/Uizrcczy13
ConsultC Apart from the intricacies of the Forms and constant regulatory changes, GST has a lot of other aspects. We had an… https://t.co/YB1asAgU2s
ConsultC Second Edition of our book released with latest amendments upto September, 2018 https://t.co/eOwUcNZife


304, Super Plaza, Sandesh Press Road, Vastrapur, Ahmedabad
+91 - 079 - 40032950
This email address is being protected from spambots. You need JavaScript enabled to view it.

markerFind on Google Maps

Who we are

We are Ahmedabad based professional consulting firm. We are providing various services to Construction, Real Estate and Project Companies in various areas like Indirect Taxation – Service Tax & Multi state VAT consultancy, ERP implementation, Site & Management audit, Designing Tender & other related contractual documents etc.