Composite sand supply and transport receipts may fall outside retail trade presumptive treatment, depending on contract bifurcation.

Receipts from a composite sand-supply and transportation contract connected with road construction were not treated as retail trading income, because the arrangement involved loading, unloading, royalty, octroi and delivery to site rather than ordinary retail sale. The analysis indicates that such activity may fall within the broader concept of civil construction through the inclusive coverage of works contracts, but the applicable presumptive treatment depends on whether the contract is indivisible or can be split between supply and transport components. As the record did not clearly establish bifurcation or the basis reflected in the TDS certificate, the matter required verification and recomputation of the correct presumptive rate.

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Issues: Whether the assessee's receipts from supply and transportation of sand were taxable under the special presumptive provisions for retail business or under the provisions applicable to civil construction and works contracts, and whether the receipts required bifurcation between supply of material and transportation charges.

Analysis: The assessee's activity was not retail trading of goods. The contract showed a composite arrangement involving supply of sand from specified zones, loading and unloading, royalty, octroi, and transportation to the site for road construction. Such activity did not fall within the scope of the special provision for retail business. The Court also held that execution of such composite work could fall within the expression "civil construction" by reason of the inclusive definition covering works contracts. At the same time, the record did not clearly show whether the contract amount had been split between supply and transportation, and the basis of deduction reflected in the TDS certificate was not established.

Conclusion: The assessee could not claim assessment under the retail-business presumptive provision, and the civil-construction presumptive provision could apply to the transportation component if the contract was divisible. The matter was therefore sent back for verification and recomputation.

Final Conclusion: The assessee obtained a partial relief by way of remand for fresh determination of the applicable presumptive rate on the basis of the true nature of the receipts.

Ratio Decidendi: Where receipts arise from a composite contract involving supply and transportation in connection with civil construction, the presumptive provisions for retail trade do not apply, and the correct presumptive treatment depends on whether the contract is indivisible or capable of bifurcation into material and transport components.

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