TaxTMI 
TaxTMI 
2019 (1) TMI 1420
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....nd 291 of 2008 dated 19.11.2012 for the assessment years 2003-04 and 2004- 05. 2.These tax case revisions have been admitted on the following substantial questions of law: "1.Whether on the facts and in the circumstances of the case the Hon'ble Tribunal was correct in holding that Form XXXVII B is essential to prove that the sub contractors are registered dealers and have paid the taxes, when Section 3- B(2)(d) of the TNGST Act grants exemption kon the payments made to sub contractors subject tot he condition that sub contractors are registered dealers and that such amounts (payments) are included in the return filed by the sub contractors? 2.Whether the Hon'ble Tribunal having held that Section 3-B of the Act c....
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....e purpose of computing the total turnover though for the purpose of levy of sales tax, the same was exempted. Aggrieved by such orders, the assessee preferred an appeal before the Appellate Deputy Commissioner (CT)-VI, Chennai. Before the First Appellate Authority, the petitioner dealer disputed the inclusion of payments made to the sub contractors in the taxable turnover for the purpose of arriving at the turnover liable to additional sales tax and levying additional sales tax on the same. The First Appellate Authority after considering the submissions on either side accepted the stand taken by the petitioner/dealer and allowed the appeal. At this juncture, it would be relevant to take note of the following finding rendered by the First Ap....
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.... to the customers and therefore, the payments made to sub contractors would necessarily form part of taxable turnover of the main contractor for the purpose of levy of Additional Sales Tax (AST). The petitioner resisted the contentions raised by the revenue before the Tribunal contending that they have made payment to the sub contractors during the relevant assessment years and those sub contractors are registered dealers and the turnover is eligible for exemption as per Section 3-B(2)(d) of the TNGST Act and the Assessing Officer himself has granted exemption on the said turnover while arriving at the taxable turnover and therefore it would not form part of the taxable turnover also. Further, it was contended that the payment would not be ....
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....were properly assessed at their end both under the Tamil Nadu General Sales Tax Act, 1959 and Tamil Nadu Additional Sales Tax Act, 1970, it would not form part of the taxable turnover of the main contractor for levying AST. Further, the Tribunal held that Section 3B of the Act clearly speaks about the works contract and not defines the principal ad agent relationship. Accordingly, it held that the payment made to the sub contractors is an exempted turnover and are not eligible for levy of AST. However, after having come to such a conclusion, the Tribunal held that such an exemption would be applicable only if Form XXXVII-B was filed as proof of levy of tax and AST at sub-contractors end. 7.This finding of the Tribunal is wholly withou....