- Printing and supply of cine-wall posters though a ‘works contract’, not taxable as ‘deemed sale’ under Andhra Pradesh General Sales Tax Act / CST Act prior to April 1995; Dy. Commissioner (Appeals) accepted assessee’s contention that business related purely to skill & labour, not sale of goods / material and consequently allowed refund of tax paid, however Assessing Authority withheld same u/s 33-BB of APGST Act; Noting that definition of “works contract” before April 1995 began with words ‘means’ but thereafter, used the word ‘includes’, HC explains that word ‘means’ entails a hard-and-fast definition whereby no other meaning can be assigned thereto whereas ‘includes’ enlarges meaning of expression defined;
- Accepts assessee’s contention that restricted meaning to the term “works contract” removed only w.e.f. April 1995 and since its activity not specified u/s 2(t) of APGST Act, Assessing Authority erred in assessing tax as ‘deemed sale’; While Article 246(1) & (3) r/w Entry 92A of List-I and Entry 54 of List II of VII Schedule to Constitution confer power on Parliament and State Legislatures to make law levying tax on ‘deemed sale’ of goods involved in ‘works contract’ execution, it is only on such a law being made that dealer can be made liable thereon; Observes, while printing and supply of cine-wall posters undoubtedly constitutes a ‘works contract’ as it is a composite contract of sale of goods, labour and services, not all types of works contract can be subjected to tax under APGST Act pre-April 1995 as Legislature only intended to tax specified works contracts; Further holds that it is only after April 2005 that all kinds of works contract brought within ambit of works contract as defined u/s 2(ja) of CST Act, hence no tax leviable under CST Act as well;
- However, invoking doctrine of unjust enrichment, observes that as assessee collected tax from customers treating transaction as ‘sale’ of goods and retained same, refund claim cannot succeed, and remands matter to Assessing Authority for examination; Further, sets aside Assessing Authority’s order revising order of DC on ground that appeal cannot be entertained as filed belatedly, stating that DC conferred with sufficient powers to condone delay; However, states that Assessing Authority not disabled from revising DC’s order, assessee continued to be liable to tax so long as assessment order remained in force and it is only by present order that subject transaction held as ‘sale’ : Telangana & Andhra Pradesh HC