TaxTMI 
TaxTMI 
2019 (3) TMI 545
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....02, 40/2002 and 58/2004 for the assessment years 1998-99, 1999-2000, 1997-98 and 1995-96. 2.These tax case revisions have been admitted on the following substantial questions of law: "a) Whether in the facts and circumstances of the case, the Tribunal is right in confirming the action of the assessing officer in levying tax on the transfer of property in dyes and chemicals in the course of inter-state trade or commerce and in the course of export of goods outside the territory of India? b) Whether in the facts and circumstances of the case, the Tribunal has not erred in overlooking the express deduction contained in Sec.3-B(2)(a) of the TNGST Act, 1959? c) Has not the Tribunal overlooked the fact that a party n....
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....'s case is that since most of the dyes and chemicals are washed away, there is no transfer of property in dyes and chemicals from the petitioner to its customers and the petitioner thus claimed the contract to be service contract not liable to tax under the provisions of the Tamil Nadu General Sales Tax Act, 1959. The Assessing Officer took a view that there was a transfer of property in the dyes and chemicals used by the petitioner in the works contract and bleaching and dye. Accordingly, he added 16% to the interstate purchases on dyes and chemicals effected by the petitioner levied tax on the same. Aggrieved by the said order, the petitioner preferred appeals before the First Appellate Authority. The First Appellate Authority allowed....
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....nd taken before the Tribunal in the appeal filed by the revenue. Nowhere we find that such a plea was raised by the petitioner, i.e. claiming deduction under Section 3B(2)(a) of the TNGST Act. The petitioner consciously restricted their claim for deduction only under Section 3B(2)(a) of the TNGST Act. Thus, in these tax case revisions, for the first time such a plea cannot be allowed to be raised. We support this conclusion by stating that Section 3B deals with levy of tax on transfer of goods involved in works contract. Sub-section (2) of Section 3B of the TNGST Act states that the taxable turnover of the dealer on transfer of property involved in the execution of works contract shall, on and from 26.06.1986, be arrived at after deducting ....
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...., if they are not ascertainable from the books of accounts maintained and produced by a dealer before the assessing authority. Serial Number Type of Works Contract Labour or other charges as a percentage value of the works contract (1) (2) (3) 1. Electrical Contracts 15 2. All structural contracts 15 3. Sanitary Contracts 25 4. Watch and/or clock repair-contracts 50 5. Dyeing contracts 50 6. All other contracts 30 (f) all amounts (including the tax collected from the customer) refunded to the customer or adjusted towards any amount payable by the customer, in respect of unexecuted portion of works contract based on the corrections on account of measurements or ....
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....- 02, the first appellate authority had given proportionate relief and therefore, for these assessment years also such relief should be granted to the petitioner is a plea which is liable to be rejected for more than one reason. Firstly, such a plea for deduction was never claimed by the assessee before the first appellate authority, whereas for the assessment years 1996-97 and 2001-02, there was a specific claim in that regard. Therefore, the first appellate authority while passing orders in respect of those two years vide order dated 30.04.2004 examined the details furnished and granted proportionate relief. 9.Ms.Hema Muralikrishnan, learned counsel would contend that they faulted the entire assessment order as being contrary to Sectio....