2014 (5) TMI 146

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....-assessees is similar. The assessees are in the business of providing communication facilities and for that purpose they place order for supply of SIM/scratch cards according to their requirement and specifications. Admittedly, the assessees do not supply any material whatsoever to the manufacturers/suppliers of the cards. It is against this backdrop the revenue has raised the following substantial questions of law for our consideration:     "i. Whether the Appellate Authorities were right in holding that the payment made for obtaining SIM card & scratch card used in the business of the assessee's mobile service from suppliers/contractors, as per their requirement and specifications, does not constitute a "works contract" ....

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.....2009. By this amendment, for the first time Sub-Clause(e) of Clause (iv) in the Explanation appended to Section 194C of the Act was inserted. Sub-Clause(e) of Clause(iv) reads thus:     "(iv) "work" shall include -               (e) manufacturing or supplying a product according to the requirement or specification of a customer by using material purchased from such customer, but does not include manufacturing or supplying a product according to the requirement or specification of a customer by using material purchased from a person, other than such customer." Thus, the word "work" as occur in sub-section(1) of Section 194C has been explained to include....

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....using material purchased from a person other than such customer. However, this amendment came into force only with effect from 1st October, 2009, which will not apply to the period in question in the present case(s). For the aforestated reasons, we find no reasons to interfere with the impugned judgments of the High Court. The special leave petitions are, accordingly, dismissed." 5. In the present cases, admittedly, the assessees did not supply any material whatsoever to the manufacturer/supplier for the supply of SIM/scratch cards as per their requirement or specification and therefore, the transaction cannot be treated as a contract for carrying out works within the meaning of the word "work" used in sub-section(1) of Section 194C of t....