KETI CONSTRUCTION (I) LTD Vs. COMMERCIAL TAXES OFFICER

JUDGEMENT

(1.) INSTANT revision petition by the petitioner -assessee is directed against the order dt.16/04/2012 passed by Rajasthan Tax Board in Appeal No.1007/2010/Kota. It relates to the Assessment Year 2009 -10.

(2.) BRIEF facts of the case are that the petitioner -assessee is a contractor and was awarded works contract by the Rajasthan Urban Sector Development Investment Program (RUIDP) for Sewerage Treatment Plant (STP) regarding design, construction, supply, erection, testing, commissioning for a total contract of Rs.31,75,10,374/ - on 04/11/2009. The petitioner -assessee was of the opinion that it falls within the definition of "civil work" and, being covered by notification No.12(63)FD/Tax/2005 -80 dt. 11/08/2006, is liable to get exemption on payment of exemption fees @ 1.5% of the total value of the contract as provided under item/category No.2 of the said notification and accordingly submitted application for issuance of Exemption Certificate to this effect. However, the Assessing Officer (AO) was of the view that looking to the nature of the contract i.e. installation of plant and machinery including PSPO water treatment plants, laying of pipe line with material, it falls under the item/category 3 of the above mentioned notification and as such, is liable to charge exemption fees @ 2.25% and accordingly passed the assessment order.

(3.) THE said assessment order was challenged in appeal before the Deputy Commissioner (Appeals) [DC(A)], who too, after analyzing the contract with RUIDP, upheld finding of the AO holding that it falls within the same notification but under item/category 3 of the notification and is liable to exemption fee @ 2.25% and not @ 1.50% and accordingly dismissed the appeal.