2023 (11) TMI 1125

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....ve been framed: "1. Whether on the facts and circumstances of the case the Commercial Tax Tribunal was legally justified in holding that the cement imported from outside the State of U.P., the turnover is liable to be reduced as per Rule 9 of the Value Added Tax Rules? 2. Whether on the facts and circumstances of the case the 1st Appellate Authority was legally justified in reducing the expenses from 21% to 10% and Tribunal has committed illegality in confirming the same?" 3. Learned counsel for the revisionist has fairly submitted that he has no grounds to argue with regard to the second question of law and therefore, same is not being pressed by him. 4. With regard to the first question of law, learned counsel on behalf of revisioni....

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....ely apply and the petitioner would be entitled to the benefit thereunder. One may further look into the judgment of the Coordinate Bench for further clarification. Relevant paragraphs are delineated below: "11.... Looking at the language of Rule 9(1)(e) of the Rules, the inter-state sale of the goods (giving rise to the claim of exemption) must precede their transfer under the works contract. Second, transfer of the property in those goods must result or spring from the transaction of inter-state sale of those goods. The findings recorded by the Tribunal are to the effect, first a works contract was executed. Thereafter, the assessee caused the movement of goods from outside the state of U.P. for purpose of execution of the works contract....

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.... deemed sale in the course of inter-state trade, the phrase "as a result of sale in the course of inter-state trade or commerce" appearing in Rule 9(1)(e) of the Rules cannot be restricted or confined to inter-state sale but as referring to transaction of "a sale or purchase of goods" falling under section 3 of the Central Sales Tax Act, 1956. . . . 23. The question of law framed above is answered thus: Since in the present case, the Tribunal recorded a specific finding that there pre-existed works contracts between the assessee and the contractees and further the assessee had purchased the goods from outside the State of U.P., only to execute those pre-existing works contracts, in absence of any further finding that such goods ha....