Works-contract tax and TDS credit govern assessment; revision allowed where prior tribunal order overlooked binding law.

Works-contract tax remains payable on the value of goods at the time of incorporation, and the contractor is entitled to credit for tax deducted at source on proof of the prescribed certificates, so only the balance can be recovered. Revisional jurisdiction was not barred because the earlier Tribunal order had not decided the governing legal issue on merits in light of the relevant statute and binding precedent, so reopening was permitted. Denial of composition required examination of the statutory preconditions, while promissory estoppel could not be invoked for exemption because no promise was made by the State to the contractor.

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Issues: (i) whether the contractor was liable to pay tax on the turnover relating to works executed for the port developer and whether credit had to be given for tax deducted at source; (ii) whether the revisional authority could reopen the assessment notwithstanding an earlier appellate order of the Tribunal; (iii) whether the contractor could be denied the benefit of composition or claim exemption on the basis of promissory estoppel.

Issue (i): whether the contractor was liable to pay tax on the turnover relating to works executed for the port developer and whether credit had to be given for tax deducted at source.

Analysis: Tax under the works contract provisions is levied on the value of the goods at the time of incorporation in the works. The scheme of the rules permits determination of that value on the basis of the prescribed deductions and also requires the contractor to maintain project-wise records. The Court held that the contractor remains liable to tax on the works turnover, but the employer is also bound to deduct tax at source and remit it to the Government. Since the same transaction cannot be taxed twice, credit must be granted for TDS proved by the prescribed certificates, and only the balance can be recovered.

Conclusion: The contractor is liable to tax, but is entitled to TDS credit on production of certificates.

Issue (ii): whether the revisional authority could reopen the assessment notwithstanding an earlier appellate order of the Tribunal.

Analysis: The bar on revision applies only when the Tribunal has decided the relevant issue or question on merits after considering the governing statutory provisions and binding precedent. An order passed in ignorance of the relevant provisions, or contrary to the law declared by the Supreme Court and the jurisdictional High Court, is not a decision on a question of law for this purpose. The earlier Tribunal order was held to have overlooked the relevant rules and binding precedent on the method of computing the taxable value and the point of levy, so the revisional jurisdiction was not excluded.

Conclusion: The revisional authority was not barred from exercising jurisdiction.

Issue (iii): whether the contractor could be denied the benefit of composition or claim exemption on the basis of promissory estoppel.

Analysis: The Court held that failure to disclose turnover in returns may attract penal consequences, but there is no statutory basis to deny composition merely on that ground if the contractor had otherwise opted for the scheme in the prescribed manner. The revisional authority was directed to examine whether the preconditions for composition were satisfied. On promissory estoppel, the contractor was not a party to the concession agreement and no promise was made to it by the State, so the doctrine could not be invoked to claim exemption.

Conclusion: Composition may be examined afresh if the statutory option was duly exercised, but exemption on promissory estoppel was rejected.

Final Conclusion: The assessments and revisional orders were substantially sustained, subject to grant of TDS credit and reconsideration of composition eligibility if the statutory requirements were met.

Ratio Decidendi: A prior tribunal order does not bar revision unless it is a reasoned decision on the governing legal issue after considering the relevant statute and binding precedent, and works-contract tax remains payable on the value of goods at incorporation with mandatory credit for tax already deducted at source.

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