SHREEM ELECTRIC LIMITED Vs. COMMISSIONER OF COMMERCIAL TAX

JUDGEMENT

(1.) The appellant has filed this present appeal under Sec. 53(2)(b) of the M.P. VAT Act, 2002 (hereinafter referred to as 'VAT Act 2002 ') against the order dtd. 13/9/2024 passed by the M.P. Commercial Tax Appellate Board, Bhopal, Bench at Indore (the assessment period is from 1/4/2014 to 31/3/2015).

(2.) The appellant is a public limited company duly incorporated and registered under the Companies Act, 1956, engaged in the business of manufacturing of HT capacitors and construction of substations of electricity boards across India. The appellant has executed various projects for M.P. Power Transmission Corporation Ltd and also for M.P. Paschim Kshetra Vidyut Vitran Co. Ltd. in the State of Madhya Pradesh during the period from 1/4/2014 to 31/3/2015.

(3.) The Divisional Deputy Commissioner of Commercial Tax, Division-3, Indore vide order dtd. 26/12/2016 completed the assessment for the aforesaid year 1/4/2014 to 31/3/2015 in which the learned assessing authority levied the tax on the entire turnover relating to the execution of various work undertaken by subcontractor treating the material supplied during the course of execution of such contract as 'deemed sale ' for want of prescribed declaration in Form-3 of the sub-contractor. The work executed by the sub-contractor to the tune of Rs.5,03,28,583.00 which was included in the total turnover of the appellant due to which additional demand of Rs.1,17,55,436.00 with interest/ penalty under Sec. 18 of M.P. VAT Act has been imposed against the appellant.