2015 (5) TMI 171

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....sthan Urban Sector Development Investment Program (RUIDP) for Sewerage Treatment Plant (STP) regarding design, construction, supply, erection, testing, commissioning for a total contract of Rs. 31,75,10,374/- on 04/11/2009. The petitioner-assessee was of the opinion that it falls within the definition of "civil work" and, being covered by notification No.12(63)FD/Tax/2005-80 dt. 11/08/2006, is liable to get exemption on payment of exemption fees @ 1.5% of the total value of the contract as provided under item/category No.2 of the said notification and accordingly submitted application for issuance of Exemption Certificate to this effect. However, the Assessing Officer (AO) was of the view that looking to the nature of the contract i.e. inst....

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....cation which mentions 'works contracts relating to installation of plants and machinery including PSPO, water treatment plants, laying of pipe line with material', the exemption fee @ 2.25% is leviable and accordingly contended that the order of the Tax Board is perverse and questions of law arise out of the order of the Tax Board. In support of his submission, ld. counsel for the petitioner-assessee relied upon the judgments rendered in the case of Associated Cement Companies Limited Vs. State of Karnataka: [2007] 7 VST 691 (Karn); Bharat Vijay Mills Ltd. Vs. Commissioner of Commercial Taxes: 1992 (85) STC 23. 6. Per-contra, ld. counsel for the respondent-Revenue contended that the terms of the contract clearly envisage that it ....

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....ction, Supply, erection testing, commissioning and five year operation and maintenance of Sewage Treatment Plant 10 MLD near Surwal Village including all civil, electrical, mechanical, pumping and other allied works and supply, paying, laying, joining, testing and commissioning of outfall sewer, various Trunk sewers and lateral sewers connection to out fall, along with all necessary manhole, appurtenances etc. at Sewai Madhopur." 8. The list enumerated in the Notification dated 11/8/2006 is also quoted herein under: Item No. Description of work contract Rate of exemption fee % of the total value of the contract 1. Work contract relating to dyeing, printing, processing and similar activities 0.25% 2. Work contract ....