PUROLATOR INDIA LTD Vs. STATE OF U P

JUDGEMENT

(1.) OM PRAKASH, J. The only question for consideration in the writ petition filed by the petitioner - a public limited company - is whether the petitioner is entitled to take benefit of the composition scheme (annexure "1" to the writ petition) in respect of its two works contracts (annexures "1" and "2" to the supplementary-affidavit ).

(2.) SECTION 3-F of the U. P. Trade Tax Act (briefly, "the Act") starting with a non obstante clause, inter alia, states that the turnover relating to the transfer of the property in goods involved in the execution of a words contract shall be determined in the manner prescribed and shall be liable to tax at such rate not exceeding fifteen per cent, as the State Government may by notification declare. In exercise of the power under section 3-F, the State Government by notification published on April 27, 1987, described as many as fifteen types of works contract, in the schedule. It is not necessary to reproduce all the works contract enumerated in the Schedule but reproduction of works contract as described at serial Nos. (1) and (6) will suffice. They are as follows : " Sl. No. (1) Fabrication and installation of plant and machinery. Sl. No. (2) to (5 ). . . . . . . . . . . . . Sl. No. (6) Civil works like construction of buildings, bridges, roads, dams, barrages and seaways, spillways and diversions. "

(3.) THE petitioner made an application to take benefit of composition scheme for the assessment years 1987-88, 1988-89, 1989-90 and 1990-91 which was rejected by impugned order dated February 8, 1993 (annexure "5" to the writ petition) by the Deputy Commissioner on the ground that both the contracts of the petitioner do not fall in the category of civil works as envisaged by the composition scheme. Aggrieved, the petitioner filed a Writ Petition No. 568 of 1993 in this Court for quashing the said order which was rejected by this Court by order dated November l, 1993 (annexure "8" to the writ petition) with the observations that the petitioner may file a review application within a period of three weeks which shall be disposed of by the Deputy Commissioner in accordance with law. This is how the petitioner made a review application before the Deputy Commissioner which too was rejected by the impugned order dated February 11, 1994 (annexure "10" to the writ petition) observing that the composition scheme is applicable only to the civil construction, contracts and, therefore, the same will apply only to the building construction contract. THE Deputy Commissioner further held that the petitioner entered into the agreements only to install waste water treatment plant of which construction of drains, tanks etc. , is a part and, therefore, the same are not construction contracts but they simply relate to the installation of waste water treatment plant which works contract falls within the description of "fabrication and installation of plant and machinery" as described at serial No. 1 in the Schedule set out in the notification dated April 27, 1987.