2005 (9) TMI 530

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....works contract, but was covered by the contract for sale of goods. Thus, the assessee's case has wrongly been held covered by section 194C, being contrary to the decision of the Pune Bench of the Tribunal in the case of Wadilal Dairy International Ltd. v. CIT [2001] 118 Taxman 141; 2. That the learned CIT(A) erred in sustaining the demand of Rs. 1,31,270 created by the order under section 201 of the Act, on account of alleged default in deducting tax at source under section 194C of the Act on the cost of purchase of printed cartons with the assessee's specifications." 2. TDS No. 2 (Delhi) 03 raises the ground of the assessee that the CIT(A) erred in confirming the penalty of Rs. 1,31,270 levied under section 271C of the Act on the ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....et; that the CBDT instruction/circular No. 681 dated 8-3-1994 relied on by the assessee as clarifying the provisions of section 194C of the Act, was in respect of shoe boxes which might be used by any other manufacturer of shoes; that the other circular relied on by the assessee was in respect of specific items manufactured, but which did not carry the specific name of brands or the name of the company and which could be sold in the open market on being rejected by the company; and that in the present case, if the boxes were rejected, they would be of no use and could be sold in scrap only. 6. Before us, the learned counsel for the assessee has argued that since the taxes in question already stand paid, section 201(1) of the Act goes awa....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....see-company and these manufacturers was for supply of material and not for carrying out any particular work as envisaged in section 194C; that it was a clear case of sale of goods by the suppliers to the assessee-company, which was evident from the fact that sales tax as well as excise duty was paid by the concerned suppliers on the packing material supplied to the assessee-company, wherever applicable; that the CBDT itself in clause 7(b) of its circular No. 681 dated 8-3-1994 (which circular has been invoked by the present assessee also), has clarified that where the contractor undertakes to supply any article or thing fabricated, according to the specifications, the property in such article or thing passes to the purchaser only after such....