2015 (2) TMI 52

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.... admitted on the following substantial question of law : "Whether, in the facts and circumstances of the case, and in law, a the Appellate Tribunal was right in law in holding that the supply, laying and spreading of ready mix concrete at the customers' site is an outright sale of ready mix ?" 3. The assessee is a manufacturer of ready mix cement concrete and the assessment was made under the provisions of Puducherry General Sales Tax Act. In the returns filed for the assessment year under consideration, the assessee claimed exemption as per the scheme then existing treating the transaction as works contract. From the clarification issued by the Commissioner, Commercial Taxes Department, Puducherry, as early as April 29, 2004, it is c....

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....nt on appeal before the Appeal late Assistant Commissioner, Puducherry, who agreed with the view of the Assessing Officer, thereby rejected the appeal. Aggrieved by the same, the assessee went on appeal before the Sales Tax Appellate Tribunal, Puducherry. 5. On going through the nature of the contract, the Tribunal held that the assessee had entered into contract of sale of the cement concrete mixture with the buyer and charged the applicable rate of tax on such sale and raised sale bills. On a perusal of the sale invoices-cum-delivery challans, the Tribunal held that the invoice particularly mentioned the supply and laying of cement concrete mixture including transport charge. The Tribunal pointed out that the invoices produced would show....

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....the contention of the assessee by placing reliance on the decisions of the apex court in Builders Association of India v. Union of India [1989] 73 STC 370 (SC) and Gannon Dunkerly & Co. v. State of Rajasthan [1993] 88 STC 204 (SC) and confirmed the assessment. Aggrieved by this, present revision by the assessee. 6. On the above narration regarding the nature of the activity of the asses-see, it is clear that the Tribunal totally misdirected itself in its understanding of the principle of works contract. As is evidenced from the reading of terms of the agreement referred to in the order of the Tribunal, it is clear that the nature of works entrusted to the assessee is not supplying ready mix concrete mixture simpliciter; on the other hand, ....