TaxTMI 
TaxTMI 
2014 (4) TMI 841
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....in erection of cranes. It entered into a contract with Madras Port Trust for designing, manufacture, supply, erection, commissioning and handing over of 2 Nos., of tyre mounted transfer cranes with telescopic spreaders and supply of one number additional telescopic spreader. An agreement was entered into between the parties fixing lump sum amount of Rs.3,77,00,000/- for design, manufacture, supply, erection, commissioning and handing over of 2 Nos., tyre mounted transfer crane with 2 telescopic spreaders one for each cranes and for the supply of one number additional telescopic spreader at a cost of Rs.20,48,000/-, totalling to Rs.3,97,48,000/-. The agreement also gave the payment terms, the completion period by erection and commissioning a....
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....ods were moved from Calcutta and from foreign countries. The assessee was provided with a site by the Port Trust apart from electricity and water at cost for assembling the cranes. Thus, the crane was to be assembled only in the Madras Port Trust and there was transfer of property in the cranes only in Tamil Nadu. The first Appellate Authority rejected the contention of the assessee on inter-State works contract and going by the terms of agreement, the First Appellate Authority held that the transaction was amenable to composite works contract. 5. On the question of levy of penalty under Section 12(3) of the TNGST Act, the First Appellate Authority pointed out that in spite of the issue of summons, the assessee, being a Government of Ind....
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....fixed distance, thus, it could not be termed as mobile cranes. In the light of the facts found, the Sales Tax Appellate Tribunal applied the decision in the case of Mazgaon Docks Ltd reported in [100 STC 57], and held that the erection of two tyre mounted cranes in the Port Trust by the assessee was only a sale and not a works contract. Taking note of the fact that the assessee had not chosen to register themselves as a dealer and they had willfully attempted to evade tax and further noting that the assessee is a Government of India undertaking and there being no scope for personal gain, the Sales Tax Appellate Tribunal held that there was no sufficient materials to hold that the assessee wanted to willfully evade payment of tax. In the cir....
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....t Trust shows that the assessee undertook the job to fabricate and erect two numbers of tyre mounted cranes in the Madras Port Trust. To that end, it entered into an agreement with Nissho Iwai Corporation, Tokyo and made use of the design and components given by Hitachi Limited, Japan. Certain equipments were fabricated specifically against the drawings in West Bengal. The assessee produced the minutes of the tender committee meeting held by the tender committee on 04.07.1985 between the Madras Port Trust officials and the assessee and also M/s.Nissho Iwai Corporation, Tokyo for the design, manufacture, supply erection and commissioning and handing over of the tyre mounted container Quay Cranes. The assessee signed a collaboration agreement....
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....was an interstate one or in the course of import. The nature of work itself shows that given the nature of the machinery to be sold, the assembling and erection required that they are moved in parts alone for the purpose of erection in the site, designed by the Port Trust. The contract stipulated supply of a chattel, namely, the crane to be erected in the Madras Harbour as per the directions of the Madras Port Trust and the sale got completed only on erection in the site. 12. In the background of this, rightly the Tribunal came to the conclusion that the turnover is assessable under the provisions of the Tamil Nadu General Sales Tax Act. The Tribunal treated this as an outright sale and not as a works contract as contended by the assesse....