TaxTMI 
TaxTMI 
1983 (1) TMI 238
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....t facts. T.R.C. No. 12 of 1979 pertains to the assessment year 1971-72, while T.R.C. No. 13 of 1979 pertains to the assessment year 1972-73. The assessee is M/s. United Mosaics, Trunk Road, Nellore, engaged in manufacture of mosaic tiles and in fixing and polishing of the same at the site specified by the consumer. It also undertakes in situ work. The assessee claimed exemption for its total turnover on the ground that all the transactions entered into by it are works contracts. This plea was accepted by the Commercial Tax Officer by his order dated 28th July, 1973 [1971-72], and 2nd March, 1974 [1972-73]. These orders were however revised by the Deputy Commissioner in exercise of his power under section 20(2) of the Andhra Pradesh General ....
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.... 1500.00 Labour charges 551.50 ------- 2051.50 Expenditure 2051.50 Amount returned on 22.3.73 32.66 -------- 2018.84 -------- Sd/- ---------------------------------------------------------------------------- Bill No. 117, Dt. 12.3.1973: 9.11.19 Sri I. Venku Reddy, To: M/s. United Mosaics, Gudur. 17/56, Trunk Road, Works at Naidupet. Nellore-1. Dear Sirs, Please supply me/us the following goods at the rates noted below and I/we agree to the conditions overleaf. I herewith pay an advance of Rs. and request you to collect the balance through 1. White with marble white No. 4 size chip: Floor area-550 sft. @ Rs. 192 per sft. Skirting 105.90 Rft. @ 1.50 per Rft. 2. Bath rooms: White with marb....
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.... the site and he paid according to measurements. The mere fact that the consumer was obliged to supply the water and electricity cannot detract from the above nature of work. No one carrying on the business of supplying, laying and polishing of mosaic tiles is expected to carry water with him nor to provide his own electricity required for polishing purposes. Morever, the bill indeed expressly states that the charges are inclusive of laying and polishing. In such a case, in our opinion, the Tribunal erred in holding that it was only a sale of tiles and that laying and polishing was only incidental to such sale. There was no material before the Tribunal to arrive at such a finding. The Tribunal appears to have based its finding upon the cond....
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....ing and 5 per cent during polishing. In this case, the Tribunal found, on a consideration of various terms of the contract and the facts and circumstances placed before it, that the transaction was a divisible one and that 85 per cent of the amount payable thereunder represents the cost of tiles while the balance of 15 per cent represents the labour charges. The High Court held that the Tribunal was justified in coming to that conclusion on the material placed before it. Now in so far as the bill in this case is concerned, it does not permit or warrant any such break-up. Hence, it is not possible to apply the principle of the said decision to the facts of the present case. Indeed, neither the assessing authorities nor the Tribunal have atte....
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....r that what we have said in the T.R.Cs. is confined only to the two assessment years concerned therein and so far as the assessment years 1975-76 to 1977-78 are concerned it shall be open to the Deputy Commissioner to go into all such questions as are open to him in law and dispose of the same according to law. T.R.C. Nos. 131 and 132 of 1978. The facts in this case are substantially similar to the facts in T.R.C. Nos. 12 and 13 of 1979, though the assessee is different. The bill which has been issued makes it clear that the charges are billed as per the measurement of the work done at the site and they are payable only after the work is done at the site. The only distinction however is that in this case the amount under the bi....