- (1.) The petitioner, a Government of India undertaking and public sector company, Ircon International Ltd., through its Deputy General Manager (Finance) has approached this Court by way of present writ petition aggrieved by the assessment order Annex-P/10 dated 06.02.2009, whereby the learned Assessing Authority, namely, Commercial Taxes Officer (Works Contract & Leasing Tax), Ajmer passed the order against the petitioner-Company, which was awarded the works contract of gauge conversion of railway tracks in Ajmer to Rewari segment.
(2.) The petitioner-company applied for exemption certificate from Sales Tax on payment of fixed exemption fees of the total value of the contract under the notification No.S.No.F.12(63)FD/Tax/2005- 80 dated 11.08.2006 issued under Section 8 (3) of the Rajasthan VAT Act, 2003. The relevant list of the types of contracts and percentage of exemption fees as given in the said notification is reproduced herein below for ready reference: - Item No. Description of work contract Rate of exemption fee % of the total value of the contract JUDGEMENT_76_LAWS(RAJ)11_2011_1.html
(3.) The petitioner-company was initially granted exemption certificate on the basis of payment of exemption fees at the rate of 1.50% under clause 2 of the said list in the notification dated 11.08.2006, reproduced above, vide Annex-P/6 dated 02.11.2006 on the application moved by the petitioner-Company dated 17.10.2006 (Annex-P/5). The respondent- CTO later on gave the show cause notice to the petitioner-company vide Annex-P/7 dated 30.01.2009 to the effect that the petitioner's contract of gauge conversion of railway tracks could not fall under Clause (2), reproduced above, but would fall in the residuary Clause 4 to which exemption fees of 3% of total value of contract was attracted.;