Works contract imports and CST inter-State provisions were held inapplicable to overturn the revenue's challenge under the compounding scheme.

Goods imported into Uttar Pradesh for use in executing a pre-existing civil works contract were held not to justify exclusion from normal assessment under the compounding scheme where the applicable earlier binding decision had already resolved the effect of Rule 9 of the Uttar Pradesh Value Added Tax Rules, 2008 in line with Sections 3, 4 and 5 of the Central Sales Tax Act, 1956 against the revenue. The Court also relied on concurrent factual findings that the assessee brought the goods into the State pursuant to the works contract and used them in its execution, and no perversity in those findings was shown. The revision therefore failed, and the revenue's challenge was rejected.

---

---

Issues: Whether goods brought into the State and used in execution of a pre-existing civil works contract could be excluded from normal assessment under the compounding scheme, and whether the applicability of Sections 3, 4 and 5 of the Central Sales Tax Act, 1956 barred the revenue's demand.

Analysis: The Court held that the issue regarding the effect of Rule 9 of the Uttar Pradesh Value Added Tax Rules, 2008 on transactions covered by Sections 3, 4 and 5 of the Central Sales Tax Act, 1956 had already been decided against the revenue in the earlier binding decision relied upon. On facts, both appellate authorities had recorded a concurrent finding that the assessee imported the goods pursuant to the works contract and applied them in its execution, and no perversity or error in that finding was shown. The Court also held that the earlier decision was squarely applicable to the facts of the case.

Conclusion: The revision failed. The revenue's challenge was rejected and the questions of law were answered against the revenue and in favour of the assessee.

---