VIJAY BUILDERS Vs. COMMISSIONER, COMMERCIAL TAX

JUDGEMENT

(1.) In this Commercial Tax Revision, the revisionist prays to set-aside the orders passed by the Commercial Tax Tribunal, whereby it has held that taxable turnover of the revisionist-assessee (hereinafter referred to as "the Assessee" for brevity) is Rs.1,11,930.00 on the ground that it is in violation and ignoring the provisions of Sub-Sec. 3, 7 and 9 of Sec. 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 1/10/2005 and 31/3/2006, he received a sum of Rs.6,21,570.00 from the contractee department out of which Rs.4,61,670.00 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.1,59,900.00, he is entitled to deduction of 30% as labour charges as per the provisions under Rule 14(2)(e) of the Act. He submitted his return before the Assessing Authority for the period of 1/10/2005 to 31/3/2006 and the Assessing Authority passed the assessment order under Sec. 25(6) of the Act and rejected several contentions of the Assessee-revisionist and determined the returnable taxable turnover at Rs.3,33,630.00 and imposed tax thereupon.

(2.) The Assessee-revisionist filed an appeal before the First Appellate Authority, who vide order dtd. 7/7/2010 accepted the contentions of the Assessee-revisionist that Assessee-revisionist received a sum of Rs.4,61,670.00 for the hill side cutting and earth work, and therefore, deleted the said addition made by the Assessing Authority towards the payment received by the Assessee-revisionist for hill side cutting and earth work. The First Appellate Authority further gave a deduction @ 30% as provided under Rule 14(2)(e) of the Act, and determined the taxable turnover of the Assessee-revisionist as Rs.1,11,930.00.

(3.) The Assessee-revisionist aggrieved, as his contention was not accepted by the First Appellate Authority that the taxable turnover determined by the First Appellate Authority is below the taxable quantum, therefore, there is no liability to pay the tax by the Assessee-revisionist.