2013 (11) TMI 1513

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.... such as, steel rods and base materials from local markets and utilise the same for the purpose of making rolling shutters. Under the said circumstances, the assessing authority (Deputy Commercial Tax Officer-II), Rajapalayam, who has been arrayed as second appellant/second respondent has directed the respondent/petitioner to pay the tax in terms of section 3(2) of the Tamil Nadu General Sales Tax Act, 1959 and the same has been challenged before the first appellate authority (Appellate Assistant Commissioner (CT)), Virudhunagar. The appellate authority (Appellate Assistant Commissioner (CT)), Virudhunagar has partly allowed the appeal and given a specific finding to the effect that the respondent/petitioner is entitled to get deduction as ....

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....has rightly set aside the order passed by the appellate authority and the learned single judge without considering the nature of works done by the respondent/petitioner has erroneously come to a conclusion that the respondent/petitioner is entitled to get the deductions available under section 3B(2)(b) and therefore the order passed by the learned single judge is liable to be set aside. The learned counsel appearing for the respondent/petitioner has sparingly contended that in the instant case, the primary work of the respondent/petitioner is to purchase raw materials in the form of steel rods and base materials and on the basis of contract given to it, the same have been converted into rolling shutters and therefore, the entire work of ....

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....gineering Works v. State of Tamil Nadu [2009] 26 VST 226 (Mad)), etc. In the decision first referred, an illustration has been given for the purpose of exemplifying the provision of section 3B(2). In the decision second referred to, it has been held that in a case like this with identical factual situations, the assessee is bound to pay tax as per section 3(2) of the Tamil Nadu General Sales Tax Act, 1959 towards finished goods. In order to controvert the decisions as cited on the side of the appellants/respondents, the learned counsel appearing for the respondent/petitioner has relied upon the following decisions: (a) The first and foremost decision is reported in [2009] 26 VST 205 (Mad) (State of Tamil Nadu v. Premier Litho Works....