2021 (7) TMI 167

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....nd Rs. 7,94,779/- for the assessment year 2017-18 respectively levied by the 1st respondent under the Andhra Pradesh Tax on Entry of Goods into Local Areas Act, 2001. 2. The petitioner's case succinctly is thus: a) The petitioner is a registered dealer under A.P. VAT Act, 2005 on the rolls of the 1st respondent. The petitioner is engaged in execution of Refrigeration and Electrical works, awarded by M/s Garrison Engineers (I), Dock Yard Maintenance, Naval Dockyard, Visakhapatnam from time to time. The contractee used to deduct tax at source as per Section 22(3) of the VAT Act, 2005, while making payments to the petitioner and used to issue TDS certificates in Form 501A. Thus the petitioner has paid VAT after availing the input t....

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....respondent issued show cause notice dated 08.10.2018 levying entry tax on Rs. 13,38,388/- for the assessment year 2016-17 and Rs. 9,21,944/- for the assessment year 2017-18 on the Air Conditioners and Spares imported from outside the Sate and used in execution of works contracts. c) In response to the above notice, the petitioner filed objections dated 03.06.2019 inter alia contending that appropriate VAT was already paid on the value of goods including air conditioners and spare parts used and transferred in execution of works contract and therefore transfer of the value of such goods is nothing but the sale price as defined Under Section 2(28) of A.P VAT Act and in that view of the matter, as per Section 3(2) of Tax on Entry Act,....

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....Row, learned counsel for the petitioner and learned Government Pleader for Commercial Taxes representing respondents. 4. The principal contention of the learned counsel for petitioner in both the writ petitions is that the air conditioners and goods that were purchased were used in execution of works contract and therefore, the value of those goods fall within the definition of "sale" under Section 2(28) of VAT Act, for which VAT was duly paid as the contractee has deducted the tax at source and issued TDS certificates since those goods fall within the ambit of sale under VAT Act. They come under exemption provided under Section 3(2) of Tax on Entry Act and hence, the petitioner is not liable to pay entry tax for the value of those goods....

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....frigeration goods purchased by him from out side the State were used in the works contract for which VAT has been paid during the relevant years and therefore, the value of those goods fall under the definition of "sale" within Section 2(28) of VAT Act, 2005 and consequentially the petitioner need not pay entry tax in respect of value of those goods in view of the exemption provided under Section 3(2) of Tax on Entry Act. The 1st respondent discarded the above objections of the petitioner and passed the impugned order. However, we are constrained to observe that the Assessing Authority has not discussed about the applicability or non-applicability of Section 3(2) of Tax on Entry Act to the petitioner's case. Therefore, we do not have the ad....