TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
Use comma for multiple locations.
---------------- For section wise search only -----------------
Accuracy Level ~ 90%
of 
Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
Join Channel
Note
Bookmark
Share
Don't have an account? Register Here
of Press 'Enter' after typing page number.
Issues: Whether the BOT arrangement for construction, maintenance and toll collection of the Dewas bypass amounted to a works contract so as to attract tax liability under the Commercial Tax Act and the Entry Tax Act.
Analysis: The agreement was for execution of construction, strengthening, maintenance and operation of the bypass road on State land for a fixed concession period, with the contractor arranging finance and recovering project cost through toll collection. The definitions of dealer and sale under the Commercial Tax Act were wide enough to include transfer of property in goods involved in execution of a works contract, and the Entry Tax Act applied to entry of goods for consumption or use in the course of business. The mode of payment through toll recovery did not alter the true character of the transaction. The essential ingredients of a works contract were present, and the nomenclature of the agreement as a BOT or concession arrangement was not decisive.
Conclusion: The BOT contract was a works contract, and the petitioner was liable to commercial tax and entry tax. The issue is decided against the assessee and in favour of the Revenue.
Ratio Decidendi: For determining tax liability, the real substance of the agreement governs; where a road construction arrangement contains the essential elements of construction, maintenance and transfer of property in goods, recovery of project cost through toll collection constitutes deferred consideration and does not prevent the arrangement from being treated as a works contract.
TaxTMI 
