STATE OF GUJARAT Vs. YANTRAMAN AUTOMAC PVT LTD.

JUDGEMENT

(1.) <DJG>AKIL KURESHI,J.</DJG> This appeal is filed by the State Government challenging the judgment of Value Added Tax Tribunal( "the Tribunal" for short). While admitting the appeal, following substantial questions of law were framed:

(2.) The controversy arises in the following background. The respondent assessee, is a company registered under the Companies Act and is a distributor of JCB India Ltd. which is the manufacturer of construction equipments. The assessee also re-sells machines used in execution of works contract after purchasing the same in case of inter-state sale. For such purpose, the assessee is a registered dealer under Central Sales Tax Act, 1956 as well as Gujarat Value Added Tax Act, 2003 ("the Act" for short). It is not in dispute that several items with which we are concerned were used in execution of works contract as defined in second explanation to section 2(23) of the Act. Central question is whether such goods would fall under entry 35 pertaining to "machinery including parts and accessories thereof used in the execution of works contract" and invited tax at the rate of 4% and additional rate of 1% or the goods would fall under residuary entry inviting tax at higher rate.

(3.) The assessee, in view of such possible dispute applied to the competent authority under section 80 of the Act for determination of disputed questions. The assessee's specific query was with respect to the following equipments: