B V SUBBA REDDY Vs. DEPUTY COMMISSIONER

JUDGEMENT

(1.) A ontractor is before this court calling in question the order passed by the Karnataka Appellate Tribunal in Appeal No. S.T.A. 569 of 2001 dated August 30, 2002. By the said order, the Appellate Tribunal has rejected the appeal filed by the contractor and has confirmed the order passed by the revisional authority in KST. SMR. 29.2000-01-B-86 dated April 10, 2001.

(2.) THE petitioner is a registered dealer, registered under the provisions of the Karnataka Sales Tax Act, 1957 ("the Act", for short). For the assessment year 1996-97, the petitioner was awarded a contract for construction of a bridge over the Ghataprabha river. For the relevant assessment year, the petitioner claimed a concessional rate of tax on the iron and steel used by the contractor for the purpose of construction of the bridge. THE assessing authority has allowed the claim of the petitioner while computing the taxable turnover and the tax liability of the petitioner.

(3.) THE revisional authority has taken into consideration that the iron and steel used by the petitioner were for the purpose of construction of a bridge over Ghataprabha river. THE contractor had not supplied iron and steel to the contractee in the same form, in which they were purchased. THErefore, keeping in view the observations made by the apex court in the case of Gannon Dunkerley Co. v. State of Rajasthan reported in [1993] 88 STC 204, reversed the findings of the assessing authority in so far as it pertained to the grant of concessional rate of tax on iron and steel for the assessment year 1996-97.