M/S. Vijay Prestressed Products (P) LTD. vs. The Commercial Tax Officer
Held
The Court held that the transaction was a contract of sale, not a works contract, as the goods were manufactured in the regular course of business. The Supreme Court judgment in K. Raheja Development Corporation was distinguished.
Facts
The petitioner manufactured PSC sleepers supplied to Indian Railways and other dealers, paying tax at 4%. The Assessing Officer treated this as a works contract taxed at 12.5%, citing Section 2(t) of the APGST Act and Supreme Court judgments.
Key Issues
Whether the supply of PSC sleepers manufactured according to specific designs constitutes a works contract or a sale. Whether the definition of 'works contract' under Section 2(t) of the APGST Act applies to the petitioner's transactions.
Sections Cited
Section 2(t)
AI-generated summary — verify with the full judgment below
IN THE HIGH COURT OF ANDHRA PRADESH AMARAVATI (Special Original Jurisdiction) WEDNESDAY, THE EIGHTEENTH DAY OF DECEMBER TWO THOUSAND AND TWENTY FOUR A \ PRESENT THE HON’BLE SRI JUSTICE R. RAGHUNANDAN RAO AND THE HON’BLE SRI JUSTICE MAHESWARA RAO KUNCHEAM WRIT PETITION NO: 14957 OF 2009 Between: M/s. Vijay Prestressed Products (P) Ltd., D.No. 50-116-15, Plot No. MIG.119, North Extension, Seethammadhara Visakhapatnam, REp. by its Managing Director. ...PETITIONER AND The Commercial Tax Officer, Dabagardens Circle, Visakhapatnam. ...RESPONDENT Petition under Article 226 of the Constitution of India praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to issue writ, order or direction, more particularly in the nature of writ of Mandamus, declaring the order of assessment passed by the Commercial Tax Officer, Dabagardens Circles, Visakhapatnam dt. 28.5.2009 in Form VAT 305 as illegal, arbitrary and viod and set aside the same.
A I.A. NO: 1 OF 2009(WPMP. NO: 19640 OF 2009) Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the writ petition, the High Court may be pleased to susp
The judgment continues below.
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