TaxTMI 
TaxTMI 
2010 (4) TMI 1009
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....ommercial Taxes after verifying the records and documents for the assessment years 1996-97 to 2000-01 had allowed the exemption on the hire charges received by the appellant in respect of DG sets and other electrical equipment that had been hired out by the appellant. The authority had held that the hiring of the said equipment did not amount to a "transfer of right to use goods" as per the provisions of section 5C of the KST Act, since the control and possession was not transferred to the lessee and hence, the exemption was applicable. Thereafter the Joint Commissioner of Commercial Taxes issued proposition notices under section 21(4) of the KST Act on April 12, 2004 to revise the assessment order dated April 16, 2003 on the ground that th....
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....9, 2004. The said order is under challenge in this appeal. We have heard the learned counsel for the appellant and the learned Additional Government Advocate for the State and perused the material on record. From the assessment order dated April 16, 2003, it is noted that the assessing authority had verified the books of account and other evidences which were produced by the appellant/assessee by engaging its technicians and operators in order to state that he had engaged his own technicians and operators and that the possession and the effective control of the same was never given to the customers. The assessing authority in paragraphs 21 and 22 of the assessment order recorded as follows: "21. In the present case, on verification of bo....
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.... dealer indicated that the dealer himself has employed operators/technicians to handle the equipments, it was necessary to know whether the dealer has actually incurred expenditure on these heads and also to know other evidences, if any. Therefore, the business premises of the dealer was also visited by the undersigned on March 11, 2003. On verification it was found that the dealer has incurred expenditure on wages, batta, diesel, insurance on vehicle and D.G. sets and expenditure on purchases. Copies of wages paid vouchers, diesel bills, insurance policies on vehicle and D.G. sets spare parts purchase bills on vehicle, Gen. sets and electrical goods and agreement form were obtained." and concluded that the dealer never transferred either ....
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....he assessing authority in the proposition notice. The basis he made on account of these letters is therefore bad in law. He observes further to set aside his own findings in the proposition notice that the possession and effective control were with the dealer and the technicians who are employed by the dealer have handled the equipments. Therefore, the transactions the assessee has dealt in are not in the nature of deemed sales or sales liable to tax under section 5C of the KST Act, 1957." From the aforesaid extract it becomes clear that the main reason for the revisional authority to set aside the order of the assessing authority is that the assessing authority after visiting some of the customers or clients of the assessee came to a co....