- (1.) OM PRAKASH, J. The only question for consideration in the writ petition filed by the petitioner - a public limited company - is whether the petitioner is entitled to take benefit of the composition scheme (annexure "1" to the writ petition) in respect of its two works contracts (annexures "1" and "2" to the supplementary-affidavit ).
(2.) SECTION 3-F of the U. P. Trade Tax Act (briefly, "the Act") starting with a non obstante clause, inter alia, states that the turnover relating to the transfer of the property in goods involved in the execution of a words contract shall be determined in the manner prescribed and shall be liable to tax at such rate not exceeding fifteen per cent, as the State Government may by notification declare. In exercise of the power under section 3-F, the State Government by notification published on April 27, 1987, described as many as fifteen types of works contract, in the schedule. It is not necessary to reproduce all the works contract enumerated in the Schedule but reproduction of works contract as described at serial Nos. (1) and (6) will suffice. They are as follows : " Sl. No. (1) Fabrication and installation of plant and machinery. Sl. No. (2) to (5 ). . . . . . . . . . . . . Sl. No. (6) Civil works like construction of buildings, bridges, roads, dams, barrages and seaways, spillways and diversions. " Section 7-D of the Act which too starts with a non obstante clause states that the assessing authority subject to the directions of the State Government may agree to accept a composition money either in lump sum or at an agreed rate of his turnover in lieu of tax that may be payable by a dealer in respect of such goods or class of goods and for such period as may be agreed upon. In exercise of the power under section 7-D the State Government announced a composition scheme (annexure "1" to the writ petition) in respect in respect of indivisible civil contracts. The petitioner entered into a contract with Diesel Locomotive Works (DLW), Varanasi, for designing, constructing, supplying and installation on turnkey basis of two separately located waste water treatment unit for its DLW complex at Varanasi. In para 3 of the writ petition, it is averred that the petitioner entered into another contract with U. P. Jal Nigam for Ganga Pollution Prevention Project, Banaras Hindu University, Varanasi, for construction of new sewage treatment plant in order to prevent the raw sewage being discharged in Ganga. It is contended that both the contracts involve civil works within the meaning of serial No. 6 of the notification dated April 27, 1987 and that they being indivisible in character, the petitioner is entitled to the benefit of composition scheme (annexure "l" to the writ petition ).
(3.) THE petitioner made an application to take benefit of composition scheme for the assessment years 1987-88, 1988-89, 1989-90 and 1990-91 which was rejected by impugned order dated February 8, 1993 (annexure "5" to the writ petition) by the Deputy Commissioner on the ground that both the contracts of the petitioner do not fall in the category of civil works as envisaged by the composition scheme. Aggrieved, the petitioner filed a Writ Petition No. 568 of 1993 in this Court for quashing the said order which was rejected by this Court by order dated November l, 1993 (annexure "8" to the writ petition) with the observations that the petitioner may file a review application within a period of three weeks which shall be disposed of by the Deputy Commissioner in accordance with law. This is how the petitioner made a review application before the Deputy Commissioner which too was rejected by the impugned order dated February 11, 1994 (annexure "10" to the writ petition) observing that the composition scheme is applicable only to the civil construction, contracts and, therefore, the same will apply only to the building construction contract. THE Deputy Commissioner further held that the petitioner entered into the agreements only to install waste water treatment plant of which construction of drains, tanks etc. , is a part and, therefore, the same are not construction contracts but they simply relate to the installation of waste water treatment plant which works contract falls within the description of "fabrication and installation of plant and machinery" as described at serial No. 1 in the Schedule set out in the notification dated April 27, 1987. So the question for consideration is whether the composition scheme applies only to the building construction contract. Clause (1) (a) of the composition scheme clearly states that the civil contracts mean the civil works like construction of buildings, shades, bridges, roads, dams, barrages, drainage, sewerage, etc. From clause (1) (a), it is manifest that the civil contracts are of wide amplitude and they are not restricted only to the building construction contracts. The words "dams", "barrages", etc. , occurring in clause (1) (a) of the composition scheme hold a clue that the civil contracts involving installation of huge machinery and electrical equipment also fall in the category of civil contracts. It is, therefore, wholly incorrect to say that civil contracts as envisaged by the composition scheme refer only to the building construction contracts.;