2022 (10) TMI 379

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....nd have been framed in terms of the provisions of the Tamil Nadu Value Added Tax Act, 2006 ('Act') all dated 14.03.2019. The assessments are assailed on the basis of the methodology adopted in computing the value of the works contract under Section 5 of the Act. 3. Section 5 provides for a levy of tax on transfer of goods involved in works contract and reads thus: "5. Levy of tax on transfer of goods involved in works contract.- (1) Notwithstanding anything contained in this Act, but subject to the provisions of this Act, every dealer, shall pay, for each year, a tax on his taxable turnover, relating to his business of transfer of property in goods involved in the execution of works contract, either in the same form or some other form,....

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....annon Dunkerley & Co., (supra), and Larsen & Tourbo Ltd & Ors.(supra). Recently the Hon'ble Supreme Court in the case of Smt.B.Narasamma vs. Deputy Commissioner Commercial Taxes Karnataka & Anr., reported in 2016 (7) Scale 685, considered the aforementioned decisions in a batch of appeals arising out of a judgment of the High Court of Karnataka. The question which was considered by the Hon'ble Supreme Court was whether iron and steel reinforcements of cement concrete that are used in buildings lose their character as iron and steel at the point of taxability, that is, at the point of accretion in a works contract." 5. Learned Judge thereafter quotes extensively from the judgment of the Supreme Court in the case of Gannon Dunkerley ....

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....of import of the goods into the territory of India or in the course of inter- State trade or commerce; (b) All amounts relating to the sale of any goods involved in the execution of works contract which are specifically exempted from tax under the Act; (c) All amounts paid to the sub-contractors as consideration for execution of works contract whether wholly or partly: Provided that no such deduction shall be allowed unless the dealer claiming deduction, produces proof that the subcontractor is a registered dealer liable to pay tax under this Act and that the turnover of such amount is included in the return filed by such sub-contractor; (d) All amount towards labour charges and other charges not involving any transfer of property i....