NIIT LIMITED Vs. DEPUTY COMMISSIONER

JUDGEMENT

(1.) The petitioner company is engaged in the business of Computer Education and Training and providing Information Technology Solutions. The petitioner is also engaged in trading in software and it has registered itself under the provisions of the A.P. General Sales Tax Act, 1957 (for short, 'APGST Act') and is being assessed to sales tax under the said Act for its sales of computers and software.

(2.) In pursuance of the Tender Notice, dated 16.06.2001, issued by the Government of Andhra Pradesh through the State Project Director, District Primary Education Programme (DPEP) inviting tenders for imparting computer education in High Schools in the State of Andhra Pradesh, including leasing of computer hardware, software and connected accessories on Build Own Operate Transfer (BOOT) basis, the petitioner company was selected and awarded the contract for execution of the said contract in 105 schools. Accordingly, the 4th respondent State Project Director, District Primary Education Programme (DPEP), Government of A.P. executed an agreement dated 29.6.2002 in favour of the petitioner which shall be in force for a period of five years and the petitioner company commenced the work.

(3.) While so, the Deputy Commissioner (Commercial Taxes) respondent No.1 issued two show-cause notices dated 18.1.2005 purportedly under Section 20 (2) of the APGST Act, 1957 proposing to revise the assessment orders dated 9.1.2004 and 19.11.2004 made for the Assessment Years 2002-03 and 2003-04 respectively. It was claimed in the show-cause notices that the work executed by the petitioner under the contract dated 29.6.2002 is a "works contract" and therefore the turnover of property involved in the execution of the said works contract is liable to be taxed at 8% under Section 5F of the APGST Act, 1957.