RELIANCE GENERATORS PVT. LTD Vs. COMMERCIAL TAX OFFICER

JUDGEMENT

(1.) THE writ appeal raises the following question: Whether the provisions of the Tamil Nadu General Sales Tax Act, 1959 relating to the appeal and revision shall apply to an order of rectification made under Sub -section (4) of Section 55 of the said Act?

(2.) THE appellant (hereinafter referred to as 'the company') is carrying on the business of supplying, installing, testing and commissioning of diesel generators. Its transactions are exclusively with Government Departments and predominantly with Bharat Sanchar Nigam Limited. The company is an assessee under the provisions of the Tamil Nadu General Sales Tax Act, 1959 (hereinafter referred to as 'the Act') on the file of the Commercial Tax Officer, Vadapalani II Assessment Circle (hereinafter referred to as 'the CTO'). For the assessment year 2000 -01, the company reported a total and taxable turnover of Rs. 7,99,58,648 and Rs. 4,53,09,582, respectively, in respect of works contract. The Commercial Tax Officer determined the total taxable turnover of Rs. 4,87,89,833 by order dated August 10, 2004. The company questioned the said assessment order, which ultimately came up for consideration in W. A. No. 3871 of 2004 and the same was dismissed by order dated November 17, 2004 on the ground of existence of alternative remedy.

(3.) THE said petition was considered by the CTO, who issued an order of rectification dated February 1, 2005. Though the assessing authority accepted the petition on the three grounds, he did not accept one ground. In respect of the works contract receipts, the CTO granted deduction towards labour charges at 15 per cent only in respect of transactions from October 1, 2000 to March 31, 2001. In respect of the transaction between April 1, 2000 and September 30, 2000, the CTO made the taxable break -up for the period April 1, 2000 to September 30, 2000 after deducting 15 per cent as reported by the company at Rs. 2,32,01,673. In fact, the error being that works contract receipts were treated as sales and once the transaction is treated as works contract, deduction towards the labour charges should have been given.