Contract for Commissioning of Turnkey Projects

2016-VIL-325-GUJ
STATE OF GUJARAT Vs LARSEN AND TOURBO LTD
Central Sales Tax Act – contract for the commissioning of turnkey projects at Bombay High – appellant entered into contract with ONGC for the commission of turnkey projects at Bombay High, situated in exclusive economic zone of the coast of India – leviability of sales tax under CST Act
HELD – when the sale of goods took place at Bombay High, for which the goods moved from Hazira to Bombay High, such movement does not get covered within the expression “movement of goods from one State to another” contained in clause (a) of Section 3 of CST Act – the goods had not been moved from one State to another since, Bombay High does not form part of any State of Union of India
The Central Government has been issuing notifications under the IT Act, 1961, Customs & Excise Act, the Service Tax and the provisions contained in Finance Act, 1994 extending different taxing statutes to designated areas, continental shelf and Exclusive Economic Zone – However, no such notification has been issued extending all or any of the provisions of CST Act to any of the designated areas, continental shelf or Exclusive Economic Zone
In absence of such notification, no tax can be demanded under the CST Act on its sale of machinery, parts etc. which sale was completed at Bombay High – revenue appeal dismissed