AP Works Contract Supply & Services

2016-VIL-43-HYD
FELGUERA GRUAS INDIA PVT LTD Vs THE ASSISTANT COMMISSIONER (CT)
Andhra Pradesh Value Added Tax Act – Work Contract – Turnover – supply and service agreements – Assessment – contracts executed from branch office in Tamil Nadu – assessment and imposition the tax under APVAT Act on the ground that the contracts awarded were entered into at Visakhapatnam where the petitioner’s company was registered under the Andhra Pradesh VAT Act and the branch office in the State of Tamil Nadu came into existence after entering into the contract
whether the entire works contract which is to be executed in the State of Tamil Nadu where an assessment could be made to bring the said transaction within the purview of the AP VAT Act and the assessment could be made
HELD – the assessment order does not indicate what are the goods which have been transported from Visakhapatnam and at what point of time and whether they relate to the execution of contract or supply of local goods or supply of imported goods. Further, the assessing officer also erred in stating that the contract was entered into in Visakhapatnam as the very documents indicate that the said three contracts were entered into at Mumbai
The judgement of 20th Century Finance Corporation case was misquoted and the statement of the assessing officer would be right with respect to the situs of the contract only when the goods were available at the time of the contract and the same does not hold good when the goods are to be supplied in later point of time – the assessment so far as the bringing transaction relating to M/s. Tuticorin Coal Terminal Pvt Ltd is concerned, is liable to be set aside
The writ petition is allowed setting aside the assessment order giving liberty to the AO to initiate appropriate proceedings.