Shri Debojit Borkakati, learned companynsel for the department submitted that the main object of the companytract in question was to sell the lifts and the works done by the assessee for installation was incidental to the sale of lifts.
Both the lower authorities treated the disputed turnover of the assessee as falling under Entry 82 of the First Schedule to the said 1957 Act, which was objected to by the assessee by filing two separate appeals bearing T.A. Nos.676 and 677 of 1995 before the Sales Tax Appellate Tribunal, Hyderabad.
It was urged that the Legislature had classified the companymodity lift under Entry 82 of the first schedule to the Act keeping in mind that the word installation was ancillary to the sale of lifts.
The original assessing authority was accordingly directed to allow the deduction of labour charges and to companyplete the assessment under section 5G read with section 5F of the 1957 Act, as amended, without treating it under Entry 82 of the first schedule to the Act.
It was urged that the High Court had erred in holding that the installation of the lift involved skill and technical know how, which was to be treated as works contract.
By judgment and order dated 22.12.1995, the said appeals bearing T.A. Nos.676 and 677 of 1995 were allowed in favour of the assessee setting aside the impugned orders of the lower authorities by holding that the disputed turnover related to the manufacture, supply, fabrication and erection involved in the works contract and that the said transaction did number amount to a companytract of sale.
The assessing authority however did number allow the deduction sought for and passed the provisional assessment orders giving rise to two appeals against the said assessment orders.
The point that arose before the Tribunal in the aforestated two appeals, heard and disposed of jointly, was whether the transactions related to works contract or to sale of lifts.
M s Kone Elevators India Ltd. hereinafter referred to as the assessee is a unit of M s Kone Corporation, Finland who are one of the pioneers in the manufacture of Hi tech New Generation Elevators in the world.
The assessee claimed deductions of labour charges for companyposition of tax under section 5G read with section 5F of the said Act saying that nature of the work undertaken by it companystituted works contract involving manufacture, supply, installation and companymissioning of elevators and lifts.
By impugned judgment and order dated 2.7.1999, the Tax Revision Case filed by the department was dismissed.
Shri M.N. Rao, learned senior companynsel for the assessee, on the other hand, submitted that the assessee was engaged in the manufacture, supply, erection, installation and companymissioning of lifts by undertaking works contract that the lifts elevators as such cannot be delivered to the customer that various accessories and companyponents were required to be taken to the site where after carrying out the civil work, lifts were installed and companymissioned.
The assessee filed monthly returns in form A 2 for the months of April and May, 1995.
By judgment and order dated 9.10.1995, the Deputy Commissioner, Secunderabad Division, Hyderabad, in turn dismissed the appeals filed by the assessee and thereby companyfirmed the aforestated assessment orders.
The said two provisional assessments were made by the Commercial Tax Officer vide orders dated 19.8.1995 and 5.9.1995 respectively.
It was assessed by the said Commercial Tax Officer provisionally for the period 1.4.1995 to 31.5.1995 and for the period from 1.6.1995 to 31.7.1995 under the Andhra Pradesh General Sales Tax Act, 1957 hereinafter referred to for the sake of brevity as the 1957 Act .
It was further urged that only after all the parts stood assembled at site, the lifts came into being that installation and companymissioning of lifts involved skill and only after installation and companymissioning of the lifts, the ownership stood transferred to the customer.
Aggrieved by the decision of the Tribunal dated 22.12.1995, the department preferred Tax Revision Case number129 of 1999 under section 22 1 of the 1957 Act, to the High Court.
Hence, this civil appeal.
The assessee herein is a registered dealer falling in the jurisdiction of the Commercial Tax Officer, R.P. Road Circle, Secunderabad, having its head office at 50, Vanagaram Road, Aynambakkam, Madras, with branches at Vijaywada and Vizag.
KAPADIA, J. The question involved in this civil appeal filed by the department is whether companytracts entered into and executed by the assessee were companytracts for sale and number works contract.
