TaxTMI 
TaxTMI 
2022 (11) TMI 1224
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....P.Jayalakshmi for Mr.R. Karthikeyan For the Respondents in both WPs : Mr.V. Prashanth Kiran, Govt. Advocate for R1, R3 & R4 ORDER By this common order, both the writ petitions are herbey disposed of . 2. The petitioner is aggrieved by the impugned order dated 14.12.2006 in Coimbatore Tribunal State Appeal Nos.738 & 735 of 2001 respectively, By the impugned order, the State appeals have been allowed in favour of the Revenue by the 2nd respondent/Sales Tax Appellate Tribunal Relevant portion of the order reads as follows: "19. In the present case on hand, even though PVC pipes and HdPE Pipes and fittings go into the making of Drip Irrigation system, they are component parts of Drip Irrigation System and they lose their id....
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....n the Schedule, then the goods has to be classified under residuary item namely under Entry 63 of Part D of First Schedule and under Entry 67 of Part D of First Schedule for the perid from which existed upto 16.7.96 and from 17.7.96 onwards respectively. The Entry in item 63 of Part D of First Schedule upto 16.7.96 and Entry 67 of Part D of First Schedule speaks as follows: "All other goods not specified elsewhere in any of the schedules." 20. So, as long as, the Sprinkler and Drip Irrigation System does not have a specific entry in the Schedule, as per Entry 63 and Etry 67 of Part D of the First Schedule, says they have to be classified under that Entry. So, the assessment made by the Assessing Authority classifying the S....
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....eported in 124 STC 59 at 74 had held as follows: "The Forty-Sixth Amendment was made precisely with a view to empower the State to bifurcate the contract and to levy sales tax on the value of the material involved in the execution of the works contract, notwithstanding that the value may represent a small percentage of the amount paid for the execution of the works contract. Even if the dominant intention of the contract is the rendering of a service, which will amount to a works contract, after the Forty-sixth Amendment the State would not be empowered to levy sales tax on the material used in such contract. The conclusion arrived at in Rainbow Colour Lab case (2000) 118 STC 9 (SC); (2000) 2 SCC 385, in our opinion, runs counter t....
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....e same. In the result, the State appeals in CTSA 735/01 and 738/01 stand modified and the State appeal in CTSA 736/01 stands dismissed." 3. The specific case of the petitioner in these two writ petitions, which pertain to the assessment years 1995-96 & 1996-97, is that the petitoner was issued with a work order for supply of Drip Irrigation materials and installation of the system for the buyers and that the said activity amounted to works contract within the meaning of Section 3-B of Tamil Nadu General Sales Tax Act, 1959 ( in short "TNGST" Act). It is submitted that in the course of execution of the works contract, the petitioner had purchased PVC and HDPE pipes for execution of the works contract and that the petitioner was e....
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....ied elsewhere in this Schedule or in Second Schedule) including water taps, showers, water tanks including water PVC tanks and other articles used for the supply or distribution of water including RCC pipes), parts and accessories thereof including valves." 7. During the material period in dispute, when there was no specific Entry in the Schedule, the goods have to be classified in terms of residuary item namely under Entry 63 of Part D of First Schedule and under Entry 67 of Part D of First Schedule for the period from which existed upto 16.07.96 and from 17.7.96 onwards respectively and the petitioner would have been liable to tax. 8. We are of the view that when Drip Irrigation System is installed, the pipes i.e, HDPE and PVC pipes....
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....and used in the execution of works contract in the same form in which such goods were purchased; .... ... It is however subject to a rider in proviso which reads thus: "Provided that no such deduction shall be allowed unless the dealer claiming deduction, produced proof that the subcontractor is a registered dealer liable to pay tax under this Act and that the turnover of such amounts is included in the return filed by such sub-contractor; and 9. In our view, the petitioner has discharged the burden of proof that is required. That apart, the issue appears to be also covered by the following decisions of this Court: (i) Joint Commissioner (CT) - III (SMR), Chepauk, Chennai and Another V. MKS Industri....