TaxTMI 
TaxTMI 
2025 (1) TMI 603
X X X X Extracts X X X X
X X X X Extracts X X X X
....ppearing for the respondent. 2. The petitioner is a dealer, registered under the A.P.G.S.T Act, 1957. It was involved in the execution of works Contacts, which was taxable under Section 5-F of the A.P.G.S.T Act 1957, for the assessment year 2002-2003. The works contracts executed by a registered dealer was taxable @8% under Section 5-F of the A.P.G.S.T Act, to the extent of the sale of goods involved in the works contract. However, under Section 5-G of the A.P.G.S.T Act read with the relevant rules, a dealer who was taxable under Section 5-F of the A.P.G.S.T Act could seek composition of the payment of tax by making an application for grant of a certificate. Upon issuance of such a certificate, in Form L1 the dealer was entitled to pay t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....at the monthly returns for the months of April 2002 to November 2002 were filed in one go, on 13.12.2002, and that the returns for the month of March, 2003 was filed on 10.04.2003 while it should have been filed on 07.04.2003 and the same amounted to contravention of the provisions of the Act. The second show cause notice proposed to levy tax @ 8%, on the turnover of the petitioner, under Section 5- F instead of Section 5-G of the A.P.G.S.T Act. 4. The petitioner filed its objections to these show cause notices. The primary objection of the petitioner was that the late filing of the monthly returns for the period April, 2002 to November, 2002 did not prejudice the interests of the revenue as these returns were filed as NIL returns. The p....
X X X X Extracts X X X X
X X X X Extracts X X X X
....itioner had approached this Court, by way of the present writ petition. The petitioner apart from assailing the impugned assessment order, dated 20.03.2006, has also chosen to challenge Rule 6-B (2) (iii) of the A.P.G.S.T Act on the ground that the same is contrary under Section 5-G of the A.P.G.S.T Act. Section 5-G of the A.P.G.S.T Act reads as follows: 5G. Composition of tax payable under Section 5F. (1) Subject to such conditions and in such circumstances as may be prescribed if a dealer, who executes any works contract other than the category of contracts notified by the Government under sub-section (2), so opts, the assessing authority of the area may accept, in lieu of the amount of tax payable by him under the Act d....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... or receives goods from outside, the State for the purpose of using such goods in the execution of works contract.] [Added by Act No. 25 of 2002, dated 21.12.2002.] Rule 6-B (2) (iii) of the A.P.G.S.T Rules reads as follows: Rule 6-B: Composition of tax in the case of dealers executing works contracts: (2) (iii) The assessing authority may cancel such permission in the following cases: (a) If the dealer fails to pay tax in any month within the time specified and, or; (b) If it appears to assessing authority that the dealer has suppressed whole or part of turnover in the return filed by him or; the return filed by the dealer appears to be made there under; (c) If the dealer contravenes an....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... that these provisions are in violation of Section 5-G. A perusal of Section 5-G would show that the said provision itself provides that such composition would be granted subject to such conditions as may be prescribed. In this case, the prescription of such conditions is set out in Rule 6-B (2) (iii). The provision of Section 5-G itself empowers the rule making authority to stipulate conditions for grant of composition. In such circumstances, it cannot be said that the conditions stipulated under Rule 6-B (2) (iii) are in any manner ultra vires of Section 5-G of the A.P.G.S.T Act. 10. The impugned assessment order states that the permission for composition, granted under the Form L1 certificate, is being cancelled for contravention of R....