2011 (11) TMI 592

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....re turnover. 2. The assessee is engaged in the business activity of fabrication and erection of structural works. The assessee filed his annual return for the year 1999-2000 on April 29, 2000. In the said return he showed the total consideration received as Rs. 37,62,208.51. The assessee claimed exemption on the turnover of Rs. 23,71,721.52 under the head labour and other like charges involved in the execution of works contract. The assessing authority held that exemption could have been granted if the assessee has been assessed to tax under section 5B of the KST Act, 1957. However, as the assessee has opted for composition rate of tax where total consideration is the criteria for levy of tax, such an exemption is not available under sec....

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....urn was treated as the total consideration towards execution of works contract and therefore, he held that the deduction allowed is against law causing loss to the Revenue. It is against the said order present appeal is filed. 4. The learned counsel for the assessee assailing the impugned order contended that no doubt it is true in the declaration filed the total turnover is shown as Rs. 37,62,208.51, but the said total turnover is not the turnover of works contract. Apart from the works contract, the assessee was also having labour contract. The said turnover declared in the returns is the totality of the turnover of both the labour contract and the works contract. The Appellate Commissioner on being satisfied about these facts was just....

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....our charges which is included in the works contract when once he opts for composition of tax under section 17(6). However, if he enters into purely labour contract where no aspect of sale is involved and consideration received in the labour contract is outside the claim of Sales Tax Act, no portion of that labour charges is liable to tax under the KST Act. If the total turnover which he has declared in the return has both these components, i.e., consideration received in a pure labour contract and the consideration received in the works contract, he is liable to pay tax under section 17(6) only in respect of works contract. In respect of the consideration received in the labour contract, no tax need to be paid. But this is a matter which ha....