MAN SINGH Vs. STATE OF JHARKHAND

JUDGEMENT

(1.) THE petitioner, an assessee under the Bihar Sales Tax Act, challenges the order of assessment in respect of a contract entered into by him with the Tata Iron and Steel Company Ltd. The concerned assessment year is 1991-92. The assessee is a works contractor.

(2.) THE assessment was completed by the Sales Tax Officer by annexure-1, whereby he treated a sum of Rs. 52,83,340. 03, out of the total sales turnover of Rs. 1,20,57,701. 96, as a taxable turnover. In other words, he deducted a sum of Rs. 62,44,622. 02 as not taxable in terms of the decision of the Supreme Court in Builders' Association of India v. State of Karnataka [1993] 88 STC 248. The assessee filed an appeal before the appellate authority by contending that a sum of Rs. 96,08,876. 42 should have been deducted as amount of labour and other charges out of the total turnover and the assessing authority was in error in considering the matter under rule 13-A of the Bihar Sales Tax Rules, 1983.

(3.) THE argument of the assessee that the statement filed by him before the Income-tax authority should have been accepted, was rejected on the ground that all entries in the books of accounts of the assessee supported by relevant materials had been accepted and there was no error in assessing the turnover which is taxable in the works contract. The appeal was dismissed. Feeling aggrieved by the dismissal of the appeal, the assessee filed a revision before the Commercial Taxes Tribunal, Jharkhand, under section 46 of the Bihar Finance Act, 1981. It was again argued before the revisional authority that the assessing authority had erred in proceeding on the basis of rule 13-A of the Bihar Sales Tax Rules, 1983 and the assessing authority had erred in not accepting the claim for deduction of other expenses incurred by the assessee and to that extent the order of assessment was unsustainable.