2008 (2) TMI 832

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... was contended by Mr. A.R. Jayashankar, learned counsel appearing for the petitioner, that for the assessment year 2004-05, the petitioner had exercised the option of paying the tax at compounding rate as required under section 7C of the TNGST Act by filing the return in form A1 and once compounding option was accepted by the department, a compounding order was also passed to that effect. Therefore, the transactions of the petitioner will not come under the category of "works contract" thereby the respondent to assume jurisdiction to revise the assessment and levy tax on the transaction as ordinary sale by invoking the provisions of section 16 of the TNGST Act does not arise. The reliance placed by the respondent on the judgment of the Supr....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....in relation to such (works contract), executed or under execution." The learned counsel also relied upon the provisions contained before the amendment in section 7C(4) of the TNGST Act, which reads as follows: "(4) A dealer, exercising option under sub-section (1) shall, so long as the option remains in force, not be required to maintain accounts of his business under this Act or the Rules made thereunder except the records in originals of the civil works contract, extent of their execution and payments received or receivable in relation to such civil works contract, executed or under execution."   A Division Bench of this court in Deputy Commissioner of Commercial Taxes, Vellore v. Devandran & Co. [1981] 47 STC 264 dealt with....