Allahabad High Court
M/S Simplex Infrastructures Ltd. vs The Commissioner Commercial Tax on 6 April, 2022
Bench: Piyush Agrawal
HIGH COURT OF JUDICATURE AT ALLAHABAD
Court No. - 1
Case :- SALES/TRADE TAX REVISION No. - 326 of 2012
Revisionist :- M/S Simplex Infrastructures Ltd.
Opposite Party :- The Commissioner Commercial Tax
Counsel for Revisionist :- Alok Kumar
Counsel for Opposite Party :- C.S.C.
Hon'ble Piyush Agrawal,J.
Heard Sri Alok Kumar, learned counsel for the revisionist and Sri Nitin Agarwal, learned Additional Chief Standing Counsel for the respondents.
The present revision has been filed against the order dated 14th January, 2012 passed by Commercial Tax Tribunal, Gorakhpur in Second Appeal No. 245 of 2011 for Assessment Year 2007-08 under the U.P. V.A.T. Act in which following question of law have been framed:
"Whether the Commercial Tax Tribunal, Gorakhpur is justified in framing the levy of tax on soil without controverting the argument of counsel or any finding thereon."
The counsel for the revisionist submits that in pursuance of the contract, the land were taken from farmers and due amount was paid to them for excavating soil from their field. After payment of due royalty to the State Government, the soil was excavated for laying the road which does not amount to any transfer of property in execution of works contract but tax was levied illegally. Such levy was challenged upto the Tribunal, though the Tribunal in its opening paragraph has recorded the argument but has not dealt with the issue in details. He prays for remand of the matter.
Learned Standing Counsel opposed the prayer and submits supports the order or the Tribunal.
Heard learned counsel for the parties and perused the record.
Admittedly, tax have been imposed on the excavation of soil in the execution of work contact. Counsel for the revisionist has referred para-8 of his ground of appeal filed before the Tribunal which is quoted hereinbelow:-
"8- यह कि कमिश्नर व्यापार कर उ०प्र० द्वारा अपने परिपत्र सं० सी०वस०अ० (वि०अनु०शा०) सी०व०क०स०-2-91.92-45/बिक्री कर दिनॉक 11.05.1992 (1993 एस०टी०डी० स्टेट्यूड एस नं० 36 पेज नं० 46) तथा पत्र सं० विधि-3(2)-5-सामान्य बार-(88.89) 4177/मुख्यालय दिनॉक 21.02.89 में कमिश्नर व्यापार कर द्वारा प्रमुख अभियन्ता उ०प्र० लोक निर्माण विभाग द्वारा सूचित किया गया है कि उनके विभाग के अनेक कार्य ठीकेदारों के अलावा विभागीय प्रणाली से भी कराए जाते हैं जिसमें कोई वर्क्स कान्ट्रैक्ट नहीं होता है इसके अलावा मिट्टी भराई का कार्य भी वर्क्स कान्ट्रैक्ट पर कराये जाते हैं जिसमें किसी वस्तु के अन्तरण का प्रश्न निहित नहीं होता है स्पष्ट है कि उक्त प्रकार के मामले में बिक्री कर कटौती का कोई औचित्य नहीं है उक्त परिपत्र के प्रकाश से स्वतः स्पष्ट है कि मिट्टी भराई पर कोई कर नहीं बनता है। अतः कर निर्धारण अधिकारी द्वारा मिट्टी पर जो रू०519615.00 कर आरोपित किया है, वह कमिश्नर व्यापार कर के परिपत्र के विपरीत है।"
The said fact have been noticed by the Tribunal at page-2 para-4 to the Tribunal order but while giving its finding just referred one judgment of this Court in the case of Sharma @ Company and others vs. The State of U.P. and another; AIR 1975 ALL 386, where the issue was whether royalty can be demanded or not for excavating the soil for manufacturing of brick. Counsel for the revisionist has not disputed the payment of royalty. The issue before the Tribunal was whether levy of trade tax on such activity can be taxed under the Act or not but that has not been considered by the Tribunal. The matter requires reconsideration. The order impugned is modified to the extended to reconsider the issue with regard to levy of tax on soil excavated, after payment of royalty, used in the execution of works contract.
The is revision allowed.
The question of law is answered accordingly.
Order Date :- 6.4.2022
Shiraz
