TaxTMI 
TaxTMI 
2013 (6) TMI 716
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....g that the materials which are used in the execution of works contract is liable for exemption under section 3B(2)(c) of the Act? (2) Whether, in the facts and circumstances of the case, the Tribunal has erred in taking into account that the assessee had converted the materials purchased into mosaic tiles in their own place of business and converted the raw materials purchased into finished product, that is mosaic tile, which is the different product manufactured from out of white cement, red oxide, etc.? (3) Whether, in the facts and circumstances of the case, the Tribunal has erred in finding that no separate commercial commodity that is mosaic tiles are emerged and therefore, the decision reported in: [1995] 97 STC 503 ....
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....; charges for planning, designing and architect's fees; charges for obtaining on hire or otherwise, machinery and tools for the execution of the works contract cost of consumables such as water, electricity, fuel, etc., used in the execution of the works contract; the property which is not transferred in the course of execution of works contract; cost of establishment of the contractor to the extent it is relatable to supply of labour and services; other similar expenses relatable to supply of labour and services and profit earned by the contractor to the extent it is relatable to supply of labour and services. 4. On verification of the assessee's case, the assessing officer found that the assessee had charged gross amount for su....
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....g and unloading and at the time of laying and polishing. Apart from that, there were electricity charges and other miscellaneous expenses meted out by the assessee, which were not considered at all. 7. The Tribunal pointed out that as the assessee had maintained separate stock accounts on the various raw materials utilized for the purpose of manufacture of tiles as well as on the expenses on the raw materials used for the execution of the works contract, purchased from within the State and which suffered tax, items which had not suffered tax, alone could be taxed under the provisions of the Act. The Tribunal viewed that the sand used in the execution of the works contract was not taxable for the period 1989-90 to 1993-94. In the circumst....
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....t used in the execution of the works contract is in the same form in which it was purchased. 9. Considering the above said fact, we have no hesitation in accepting the contention of the Revenue that in the absence of use of the materials purchased in the same form in the execution of the works contract, deduction under section 3B(2)(b) of the TNGST Act could not be extended to the benefit of the assessee. It is also relevant to note that the dealer had not charged separately for the manufacture of tiles and for the labour charges. Thus, in the absence of details, the assessing authority adopted the statutory deduction for the purpose of working out the taxable turnover under the Act. A reading of the order of the assessing authority admi....