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

TS-150-HC-2018(KAR)-VAT

Posted by on in VAT
  • Font size: Larger Smaller
  • Hits: 512
  • 0 Comments
  • Subscribe to this entry
  • Print
  • Report this post
TS-150-HC-2018(KAR)-VAT
 
HC holds that supply of elevators / lifts and components from assessee's Central Procurement Division in Maharashtra for executing works contract in Karnataka, constitutes an inter-state supply of goods falling within the ambit of Section 3(a) of CST Act; Notes that reassessment proceedings were concluded treating such contract as “works contract” exigible to VAT under Karnataka VAT Act on the basis of SC Constitution Bench ruling in Kone Elevator India Pvt. Ltd.; Observes, while it can be argued that assessee attempted to split composite contract into two viz.
 
Purchase Order (PO) for supply of materials and Work Order for installation, testing and commissioning, and both are intrinsically interlinked, however, POs are placed by contractee / purchaser with the manufacturing unit at Maharashtra, and all documentary evidence demonstrate movement of goods from one State to another in pursuance of such PO;
 
Hence, such sale shall fall outside competence of State VAT authorities, remarks HC while observing that, “divisibility of the contract would not empower the Authorities to subject the inter-state transaction to tax under the State Tax Act” on the ground that assessee employed dubious methods to avoid payment of tax to the State;
 
Even assuming indivisibility of contract, transfer of property in execution thereof amounting to a deemed sale is an inter-State sale irrespective of the fact that property in goods gets transferred at time of incorporation of goods in the contract or that it is necessary to employ skilled / experienced engineers for installation and commissioning.
 
The judgment was delivered by Justice S. Sujatha. Sr. Counsel K. P. Kumar along with Mr. Prashant Kumar appeared on behalf of the assessee, while Revenue was represented by Mr. T. K. Vedamurthy
 
Rate this blog entry:
0
Trackback URL for this blog entry.

Comments

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

Leave your comment

Guest
Guest Wednesday, 26 June 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

Address

Address:
304, Super Plaza, Sandesh Press Road, Vastrapur, Ahmedabad
Gujarat-380054
Tel:
+91 - 079 - 40032950
E-Mail:
This email address is being protected from spambots. You need JavaScript enabled to view it.
Website:
www.consultconstruction.com

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.