Declared goods classification and works contract labour deduction upheld where records were insufficient and prior view was not binding.

Sales of parts and spare parts of rolling shutters were treated as first sales outside the declared goods entry, so the higher tax rate was upheld and the challenge failed. For fabrication and fixing of rolling shutters treated as a works contract, the labour deduction was restricted by the prescribed percentage because no reliable item-wise break-up of labour charges was produced from the accounts; the statutory deduction was therefore properly applied and that challenge also failed. The revision was rejected in full, and the assessment on both issues was sustained.

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Issues: (i) Whether the turnover relating to sales of parts and spare parts of rolling shutters was liable to tax at 6 per cent or at 4 per cent as declared goods under the Third Schedule; (ii) Whether the deduction towards labour charges in respect of fabrication and fixing of rolling shutters, treated as a works contract, could be restricted by applying the standard percentage under the Rules.

Issue (i): Whether the turnover relating to sales of parts and spare parts of rolling shutters was liable to tax at 6 per cent or at 4 per cent as declared goods under the Third Schedule.

Analysis: The turnover brought to tax did not relate to mild steel pipes, angles, flats or other steel items purchased within the State, but to first sales of parts and spare parts of rolling shutters. The authorities found that these items could not be treated as steel structurals falling within the declared goods entry. The earlier Tribunal order for another year did not bind the later Bench mechanically, particularly when the factual details of the goods were absent in the present case. The finality under section 21(9) did not require the Tribunal to follow its earlier view in a different appeal for a different year.

Conclusion: The higher rate of tax was correctly applied, and the challenge to this finding failed.

Issue (ii): Whether the deduction towards labour charges in respect of fabrication and fixing of rolling shutters, treated as a works contract, could be restricted by applying the standard percentage under the Rules.

Analysis: No break-up of labour charges was furnished and the labour component for each item of work was not ascertainable from the accounts. In such circumstances, the assessing authority was justified in applying the prescribed deduction percentage under rule 6(2)(iv). The Tribunal found no legal infirmity in that approach.

Conclusion: The restriction of labour charges was upheld and the challenge to this finding failed.

Final Conclusion: The revision was rejected in full, and the assessment on both disputed issues was sustained.

Ratio Decidendi: A Tribunal is not bound to follow its earlier decision mechanically in a later year's appeal where the factual basis is different, and in the absence of reliable material showing the actual labour component, the prescribed statutory deduction may be applied.

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