- (1.) Present two revisions under Section 11(1) of the U.P. Trade Tax Act (hereinafter referred to as the 'Act') are directed against the order of the Tribunal dated 24.5.2000 for the assessment years 1994-95 and 1995-96.
(2.) Heard Sri B.K. Pandey, learned Standing Counsel and Sri Bharat Ji Agrawal, learned Senior Advocate, appearing on behalf of the opposite party. Learned Standing Counsel submitted that dealer opposite party (hereinafter referred to as the 'Dealer') entered into the various contracts. Three contracts were relating to supply of P.S.P. Pipe, M.S. Pipe Fittings and two contracts were for erection, commissioning and civil works. He submitted that during the assessment year 1994-95 the dealer had raised the bill for Rs. 34,56,412/- to Jal Nigam, Jhansi and Agra for the work of erection and commissioning and raised bill for Rs. 37,19,616/- for civil work. Against the aforesaid bills, the total receipt was - at Rs. 71,76,028/-. The assessing authority had deducted a sum of Rs. 21,76,028/- towards labour charges and has taken the value of the goods involved in the execution of such works contract at Rs. 40,00,000/-. The assessing authority allowed the deduction of the purchases of goods for Rs. 4,16,592/- made from the registered dealer and thereafter estimated the taxable turnover at Rs. 35,83,408/- towards value of the goods involved in the execution of work contract.
(3.) Likewise for the assessment year 1995-96, the applicant had show the receipt towards erection and commissioning at Rs. 1,00,92,052/- and towards civil work at Rs. 70,54,851/-. The Assessing authority stated that vide letter No. 562 dated 30.03.1998, Jal Nigam, Jhansi informed payment of Rs. 70,54,851/- towards civil work and erection, commissioning while earlier, the above payment was informed only for civil work. The assessing authority had taken the total receipts towards erection, commissioning and civil work at Rs. 2,39,40,663/-. From the aforesaid amount, a sum of Rs. 71,40,663/- was deducted towards labour charges and the value of the goods involved in the execution of the work contract has been worked out at Rs. 1,68,00,000/-. Out of the aforesaid amount, the purchases made from the registered dealer at Rs. 10,78,251/- was deducted and the taxable turnover towards the value of the goods involved in the execution of the works contract has been worked out at Rs. 1,57,21,750/-. Learned Standing Counsel submitted that the Tribunal while deleting the tax on the aforesaid transactions, have not at all considered the finding recorded by the assessing officer and, therefore, the order of the Tribunal is vitiated. Sri Bharat Ji Agrawal, learned Senior Advocate, appearing on behalf of the opposite party, submitted that the charges received towards erection, commissioning and civil work were in the nature of the labour charges in which there was no use of any material. He submitted that the materials which were supplied by the opposite party under the supply contracts were got erected, commissioned and used in the civil work and, therefore, assessing authority has erred in taking the erection, commissioning and civil work as a works contract and estimated the value of the material alleged to have been used in such works contract while they were purely labour works. He submitted that the Tribunal has considered this aspect of the matter in detail and the learned Standing Counsel is not right in saying that the findings of the assessing authority in respect of the erection, commissioning and civil work have not been considered.;