Work Contract

[Jasbir Uppal]

Dear professional bothers & sisters,

My client is dealing in the business of civil work contract & for consumption of material import the goods from outside Uttar Pradesh. As specified in the work order signed between the contractor and contracttee . The goods dispatched from outside state to the respective sites as compliance of Section 3 of CST Act,1956.

As per provisions of Rule 9 Determination of turnover of sale of goods involved in the execution of a works contract deducted all amounts representing the value of goods in which property has been transferred in the execution of the works contract as a result of sale in the course of interstate trade or commerce from the total amount.

When the appellant authorities allowed exemption on inter-state transaction under Rule 9(e) will the assessing officer would also have power to impose the tax on central sale after treating these transactions as central sale. Even if the assessing officer has allowed exempt transaction in his original central sale tax assessment order.

Please provide case laws.

With Regards

J.S.Uppal

Tax Consultant

AI Summary

Interstate goods in works contract: can tax be imposed after exemption under deduction rule was allowed in assessment? A contractor delivering goods from outside the state to execution sites claims deduction of the value of goods treated as interstate sales from works-contract turnover under the rule allowing such deduction; the question is whether the assessing officer can later treat those transactions as central sales and impose tax despite having allowed the exemption in the original assessment.