Valuation - To remove the anomaly, a level play mechanism has...

Valuation - To remove the anomaly, a level play mechanism has been adopted to levy tax on the inter-state purchases or the goods purchased from outside the territory of India at the regular rate of tax and to deduct the same from the total consideration of the works contract executed by the dealer to make the dealer eligible to opt for composition scheme, despite purchasing goods from outside the State or outside the territory of India. - By any stretch of imagination, it cannot be held that the levy of tax under Section 4 would be on the sale value of the goods transferred in the works contract executed by the dealer. - HC

---