KMC CONSTRUCTION LIMITED Vs. STATE OF ANDHRA PRADESH

JUDGEMENT

(1.) BOTH these appeals are related to the assessment year 2000 -01 (APGST). The impugned orders in both the cases are the revisional orders of the Additional Commissioner (CT) (Legal), Hyderabad. Since identical issues are involved in both the impugned orders, a common order is being passed. The appellants have stated that the impugned orders are illegal and not maintainable under law and have given the following arguments on each of the three issues.

(2.) THE learned State Representative has supported the orders of the Additional Commissioner and stated that the Hon'ble A.P. High Court has held in the case of B. Seenaiah and Co. Vs. Commercial Tax Officer, Khairatabad Circle, Hyderabad and Others : (2001) 124 STC 248 that seignorage charges are deemed pre -sale expenditure and therefore includable in the turnover related to works contract.

(3.) ON the question of gross profit, the learned State Representative has stated that only profit earned by the contractor to the extent relatable to supply of labour and services can be deducted as per Rule 6(2)(h) and therefore the addition of gross profit is justified.