Deduction for goods used in a pre-existing works contract applies when imported goods are solely deployed for that contract.

Goods imported from outside Uttar Pradesh for execution of a pre-existing works contract qualified for deduction under Rule 9(1)(e) of the U.P. Value Added Tax Rules, 2008. The Tribunal's finding that the goods were brought into the State for a single project, and that there was no contrary finding of prior sourcing, non-application to the contract, or multiple sales, attracted the statutory benefit. On those facts, the deduction was available and the legal question was answered in favour of the assessee.

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Issues: Whether the assessee was entitled to deduction under Rule 9(1)(e) of the U.P. Value Added Tax Rules, 2008 in respect of goods imported from outside the State of U.P. for execution of a pre-existing works contract.

Analysis: The goods were found to have been imported from outside the State of U.P. and applied in a single project in the State. The Tribunal recorded a specific finding that the goods were brought into the State for execution of pre-existing works contracts and there was no contrary finding that the goods had been sourced earlier, were not applied to the works contract, or gave rise to two separate sales. In such circumstances, the statutory benefit under Rule 9(1)(e) was attracted.

Conclusion: The assessee was entitled to the deduction under Rule 9(1)(e) of the U.P. Value Added Tax Rules, 2008, and the question of law was answered in favour of the assessee.

Ratio Decidendi: Where goods are imported from outside the State pursuant to a pre-existing works contract and are used only for executing that contract, the deduction contemplated by Rule 9(1)(e) is available absent a finding of prior sourcing, non-application to the contract, or multiple sales.

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