VINAYAGA ENGINEERING WORKS Vs. STATE OF TAMILNADU

JUDGEMENT

(1.) THE correctness of the orders of the Sales Tax Appellate Tribunal, (Additional Bench), Chennai, dated 04. 03. 2004 and 13. 11. 2003 is assailed before this Court in these revisions. The relevant assessment years are 1985-86, 1988-89, 1990-91, 1992-93, 1993-94, 1994-95, 1995-96 and 1996-97. Tax Case (Revisions) Nos. 466 to 469, 473, 477, and 478 of 2006

(2.) THE revision petitioners in these revisions are dealers in rolling shutters and assessees on the file of the respondent. They were originally assessed in respect of the turnover of the transaction of sale of rolling shutters as works contract taxable at 5%. The assessees have taken the matter on appeal to the First Appellate Authority, who allowed the appeals on the premise that the goods with which the shutters were made up of had already suffered tax. The Joint Commissioner of Commercial Tax took up the matter on suo motu revision, set aside the order of the appellate authority and remitted the matter back to the assessing officer, for de novo consideration.

(3.) ON remand, the assessing officer, after taking note of the transaction and the material evidence available in respect of manufacture of rolling shutters again framed an assessment treating the transaction of sale of rolling shutters as one of works contract. On appeal, once again the First Appellate Authority accepted the contention of the assessees that they effected sale of tax suffered goods, such as guide channel, bottom plate, ball bearing, steal tubes, and angles; that the rolling shutters emerged only at the place of customers, and set aside a portion of the assessment order. Aggrieved by that portion of the order, the assessees filed appeals before the Tribunal. The revenue filed enhancement petitions for restoration of taxable turnover deleted by the Appellate Assistant Commissioner. The Tribunal, by reason of the impugned order, set aside the order of the Appellate Assistant Commissioner by holding that the manufacture and supply of rolling shutters is taxable as 'works contract'. The levy of penalty for filing of incorrect and incomplete return under section 12 (5) (iii) of the TNGST Act, was confirmed, but the levy of penalty under section 12 (3) (b) of the Act was deleted as unsustainable. The correctness of the same is questioned before us.