The Madras High Court held that the transfer of goods involved in works contract would amount to ‘sale’ and the entire turnover is taxable.
The Respondent Authority had re-assessed the liability of the tax in connection with the use of chemicals in printing works for the assessment years under the Tamil Nadu General Sales Tax Act, 1959 in respect of the Petitioner, who had received the copies of those orders.
The Petitioner, United Processors was entitled to prefer appeal against those orders under Section 31 of TNGST Act, within a period of 30 days from the date of their receipt before the Appellate Authority, who has been empowered to condone delay in filing such appeal for an extended period of 30 days, if sufficient cause for not preferring appeal within that period is made out.
However, the Petitioner did not prefer any such appeal before the Appellate Authority, but has instead filed the Writ Petitions challenging the orders passed by the Respondent beyond the maximum limitation period of 60 days from the date of receipt of copy of those orders.
The Coram consisting of Justice P.D. Audikesavalu has reiterated that after introduction of Section 3-B and the amendment made to the definition of ‘sale’ in Section 2(n)(ii) of the TNGST Act, the transfer of goods involved in works contract would amount to ‘sale’ and the entire turnover has become assessable to tax.
The court said that the Petitioner cannot have any grievance for the re-assessment of tax liability based on that settled question of law.
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