NANDINI IMPEX PVT. LTD. Vs. STATE OF TRIPURA

JUDGEMENT

(1.) The petitioner has challenged an order dated 23.04.2018 as at Annexure-8 to the petition. He has prayed for the grant of refund of a sum of Rs.24,21,007/- which was deducted from the petitioner's bills in course of execution of a work contract for the assessment period 2010-11 to 2013-14. These prayers arise in following background:

(2.) Petitioner is a private limited company and is dealing in laying down and installation of pipes in the field of Gas, Electric and Telecom sectors with Trenchless technology called Horizontal Directional Drilling (HDD, for short). The petitioner was awarded a work order for laying/ installation of pipes through HDD technology in the city of Agartala by one Kazstrov Services Infrastructure India Private Limited (KSS, in short) on 21.12.2010. For execution of the said work the petitioner obtained a registration under the then in force Tripura Value Added Tax Act (TVAT Act, for short) in January, 2021. In the course of the execution of the work order the petitioner as a service provider paid service tax to the Central Excise and Service Tax Department, Government of India by depositing or adjusting service tax.

(3.) In the course of payment of the bills to the petitioner-company KSS had deducted tax of Rs.24,21,007/- during the year 2011-12. It appears that the said action was taken by KSS under the direction of the Superintendent of Taxes. The petitioner, therefore, wrote to the Superintendent of Taxes, Charge-V on 18.08.2011 and explained the detailed mode of execution of the work in order to point out that the petitioner is a service provider and is exigible to service tax. However, in absence of any transfer of material or machinery during the course of execution of the work, no sale takes place as per the provisions of TVAT Act. It was pointed out that there is no transfer of property in goods and, therefore, in this transaction the petitioner has no VAT liability.