VEEAAR CONSTRUCTIONS Vs. STATE OF ANDHRA PRADESH

JUDGEMENT

(1.) THESE revision petitions under Section 22(1) of the Andhra Pradesh General Sales Tax Act, 1957 (for brevity, the Act), by a dealer registered under the provisions of the Act, are directed against the orders of the Sales Tax Appellate Tribunal, Hyderabad, dated 30.01.2009, in T.A.Nos.1272, 1273 and 1274 of 2003.

(2.) THE brief facts leading to the disposal of these revision cases are stated as follows:- THE petitioner was a dealer engaged in works contract and registered under the provisions of the Act and is an assessee under the rolls of Commercial Tax Officer-I, Kadapa. In the course of its business activities, he undertakes various civil construction works as a competitive price quoted by it for the execution of the entire work, which in the sales tax parlance is termed as a works contract, and the consequence insofar as the Act is concerned, is when the dealer like the petitioner executes a works contract, the value of the taxable goods involved in the execution of the works contract attracts tax liability under the provisions of the Act and the machinery for determination of the tax liability is set in motion and quantified, and the dealer called upon to pay the corresponding tax. THE petitioner dealer, who was assessed by the Commercial Tax Officer-I, Kadapa for the years 1998-1999, 1999-2000 and 2000-2001 was granted exemption in the turn over of Rs.8,79,695/- under the following heads:-

(3.) THE question that falls for consideration in these tax revision cases is whether the dealer, who is executing the works contract, is entitled for the deduction of amounts pertaining to the depreciation on trippers, maintenance expenses of trippers and consumables, used in the execution of works contract under Rule 6(2) of the Rules or not?