Decided on January 19,2009

S.R.C. Constructions (P) Ltd. Appellant


N. Ratna Raju, Member (D) - (1.) THE short point that falls for adjudication in this appeal is this: Whether the appellant who opted for composition scheme under Section 5G of the APGST Act, '57 is eligible to pay Rs. 4/ - per sft. in respect of construction of apartments? We may briefly record a factual account leading to the controversy involved in this appeal.
(2.) M /s. S.R.C. Constructions (P) Ltd., Begumpet, Hyderabad (for short, 'the appellant') are engaged in Works Contracts under the provisions of APGST Act, '57 (for short, 'the Act'). Their assessment for the year 1999 -2000 under the said Act was finalized by the assessing authority by order dated 01 -05 -2001. The assessing authority charged the appellant at the rate of Rs. 4/ - per sft. on the basis of plinth area constructed in terms of the composition scheme under Section 5G of the Act. However, taking objection, the Deputy Commissioner (CT)., Punjagutta Division in exercise of power under Section 20(2) of the Act revised the assessment on the ground that the appellant did not opt to pay tax at the rate of Rs. 4/ - per sft., through 'V application under composition scheme. The revision order is dated 08 -01 -2002 which triggers the controversy; hence this appeal. Heard.
(3.) THE learned Counsel for the appellant strongly contended that the appellant had opted for composition of tax under Section 5G of the Act and obtained a Certificate in Form L1 and in respect of contracts involving buildings and apartments no separate Certificate of Composition is required in form L1. He further submitted that the learned Commissioner in CCT's Ref. A1(2)/529/2005, dated 14 -07 -2005 clarified that the contractor or builder need not specifically mention in the application in Form -L that it would pay tax at the rate of Rs. 4/ - per sft., and under the composition scheme under Section 5G of the Act, he is automatically eligible to pay Rs. 4/ - per sft. He also filed a copy of this Tribunal's decision in the case of M/s. Siri Sampada Contracts, Hyderabad Vs. State of Andhra Pradesh (EB2 2007 SCC 0283) in T.A. No. 758P.007, dated 03 -10 -2007 allowing the appeal having regard to analogous facts. He urged that the appeal be allowed. The learned State Representative supported the impugned order without denying the fact of Commissioner's Circular and the decision of this Tribunal quoted by the learned Counsel for the appellant.;

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