TaxTMI 
TaxTMI 
2013 (12) TMI 501
X X X X Extracts X X X X
X X X X Extracts X X X X
....ment year 1986-87. 2. This Tax Case (Revision) has been admitted on the following substantial question of law:- "Whether in the facts and circumstances of the case, the Tribunal is right in law in treating the transaction of the petitioner in supplying and laying mosaic to the prescription of the purchaser, as an outright sale" 3. The assessee was engaged in the business of manufacture of mosaic tiles under the name and style of M.R.Tiles and reported a total and taxable turnover of Rs. 2,93,913.13/- and Rs.Nil respectively and claimed exemption of the entire turnover reported by him in the annual return filed on 28.01.1998 for the year 1986-87 under the provisions of the Tamil Nadu General Sales Tax Act, 1959, (TNGST Act). The cla....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e same, the assessee filed an appeal before the Appellate Assistant Commissioner (CT) III, Chennai, raising the same contention as raised before the Assessing Officer and contented that they are entitled for exemption under Section 3B(2)(b) of the TNGST Act. The first Appellate Authority, by order dated 04.07.2000, dismissed the appeal agreeing with the findings recorded by the Assessing Officer and observed that separate accounts maintained by the assessee is of no avail, since the raw materials had not been used in the laying and polishing of materials as such, but out of those raw materials, the assessee had manufactured mosaic tiles, which had not suffered tax earlier in the State and transferred to the customers. By relying upon the de....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... of raw materials purchased locally from the registered dealers in the same form, they are eligible for exemption under Section 3B(2)(b) of the TNGST Act. This contention was also rejected by placing reliance on the decision of this Court in Tamil Nadu Mosaic Manufactures Association vs State of Tamil Nadu reported in 97 STC 503 and the Tribunal also confirmed the levy of penalty. Aggrieved by the same, the present Tax Case (Revision) has been filed. 5. The learned counsel appearing for the assessee reiterated the contentions raised before the Tribunal and submitted that in terms of Section 3B(2)(b) of the TNGST Act, all amounts for which any goods specified in the first Schedule or second schedule are purchased from registered dealers l....
X X X X Extracts X X X X
X X X X Extracts X X X X
....corded by all the three authorities, is perfectly justified and calls for no interference. 7. The learned counsel appearing for the assessee relied on the decision of the Hon'ble Supreme Court in the case of Larsen and Toubro Limited and Anr., vs. State of Karnataka and Anr., reported in 65 VST 1. The learned counsel brought to our attention the decision in paragraph 60, to explain the expression "in some other form". The decision of the Hon'ble Supreme Court does not in any manner advance the case of the assessee, since the Hon'ble Supreme Court itself pointed out that the expression 'in some other form' in the bracket of the Section clearly shows that the ordinary understanding of the term "goods" had been enlarged ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....t, this Court observed as follows:- 11. Article 366(29-A) was not enacted to confer larger benefits on the persons engaged in carrying out works contract who transferred the properties and the goods used in such contract to the other party to the contract. If a person who is engaged for example in the manufacture of rolling shutters, buys iron and steel for the purpose of manufacture, after paying tax on such purchase, he cannot contend while selling the shutters that no tax should be levied on the shutters as they have been manufactured from iron and steel on which he has already paid tax. The iron and shutters are commercially distinct commodities and are charged to tax accordingly. That position will not change merely because the pers....
X X X X Extracts X X X X
X X X X Extracts X X X X
....emption under Section 3B(2)(b) of the TNGST Act. As already pointed out that the contract is one for manufacture of mosaic tiles and laying of tiles in the business place of the dealer, which is an inevitable works contract, the Assessing Officer in his point of assessment, proposed adoption of 50% for manufacturing process and the other 50% for laying and polishing, there being no separate details for payment of such wages towards manufacturing of mosaic tiles and for laying and polishing in the sites of his customers, the Assessing Officer thus adopted the proportion as mentioned above. 10. It is seen from the provisions of Section 3B(2)(e) of the TNGST Act, wherever the accounts mentioned all amounts towards "Labour charges and other ....