TaxTMI 
TaxTMI 
2018 (8) TMI 2
X X X X Extracts X X X X
X X X X Extracts X X X X
.... the other on refusal of the Tribunal to verify Form-18 declarations and SRO Forms produced for concessional rate of tax. We see that a number of grounds have been raised before the Tribunal, which have not been raised as questions of law in the revision. Essentially the questions arising are on facts, but despite that for examination of the issues, we re-frame the questions for consideration as follows: "(1) Whether the Tribunal was right in affirming the tax imposed on the income on account of hire charges received by the Company for furniture supplied to the residences of the employees? (2) Whether levy of tax on transfer of furniture to employees is liable to be taxed being a second sale? (3) Whether the Tribunal was cor....
X X X X Extracts X X X X
X X X X Extracts X X X X
....al refused to interfere with the same. The contention of the assessee is that, in fact, it is a loan to the employees for the purpose of purchase of furniture. If it were a loan it should have been disbursed so, but the specific contract reveals that the assessee retained the ownership of the furniture and also received hire charges for the same. The three purchase vouchers in the name of the assessee, produced by the assessee itself, goes against its contention that it was a mere loan. The assessee had been supplying furniture to its employees and also had been taking hire charges for the same which definitely comes within the ambit of a transfer of right to use and we do not find any reason to interfere with the order of the AO as approve....
X X X X Extracts X X X X
X X X X Extracts X X X X
....Vehicles Department. Further, it is seen from the submission of the assessee before the appellate authority as extracted in the memorandum that there is a specific contract between the assessee and the contractors and the conditions of contract facilitates such hiring for speedy completion of the job. In that case, the terms of the contract would have indicated as to under whose control the cranes were, even when it was hired. The assessee failed to produce such a contract before any of the fact finding authorities. We are not inclined to interfere with the finding of the Tribunal affirming the levy made by the assessing officer. 5. The next question is on Form-18 and SRO forms produced by the assessee before the Tribunal. The IA filed i....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... questions herein above framed are all questions on facts, which already have been held against the assessee and we hence see no reason to interfere with the order of the Tribunal. 6. On to the question of the correct rate of tax on bitumen and SDPS, we see that the Tribunal has extracted the said grounds but has not answered it. The learned Senior Government Pleader would contend that only the questions urged at the time of hearing would have been answered by the Tribunal. We however, are not inclined to accept the contention of the State on that count. The Tribunal having extracted that specific ground ought to have stated that it was not argued or answered it. The correct rate of bitumen and SDPS will be verified by the AO and the mod....
X X X X Extracts X X X X
X X X X Extracts X X X X
....tside the State. 9. On the aspect of water cess, the Tribunal relies on State of Kerala v. Cochin Shipyard Ltd. [(2009) 17 KTR 621 (Ker.)], which, according to the learned Counsel for the petitioner, is not at all applicable to the present case. Therein, the issue was whether the water charges paid by the assessee for its consumption in the industrial unit could be levied with purchase tax. The Division Bench of this Court found that such water charges are exigible to purchase tax under Section 5A. In the present case, the purchase tax under Section 5A has been satisfied by the assessee. What is to be looked at is whether the water cess paid by the assessee under the Water (Prevention and Control of Pollution) Cess Act, 1977 [for brevity....
X X X X Extracts X X X X
X X X X Extracts X X X X
....tion includes any body entrusted with the duty of supplying water under any law by or under which it is constituted. The cess payable under the circumstances of a local authority supplying water to a person carrying on a specified industry is by the industry who consumes and uses such water supplied. The Explanation to Section 3 also brings in consumption of water within the ambit of the description "supply of water". Hence, the cess is on the supply of water, which has to be levied at the time of supply and the charge is on the person who uses such water. In the present case, it is the Irrigation Department which supplies water for a price and, hence, the turnover also includes water cess. The water cess is a component that can be legitima....