Appellate Assistant Commissioner (CT) Vs Supreme Coaters & Fabricators (Madras High Court)
Madras High Court held that Powder Coating products like yokes, links and tubes amounts to works contract and hence the same is liable to tax under section 15(1) of the Puducherry Value Added Tax Act, 2007.
Facts- Substantial question involved in the present writ is whether the work of powder coating undertaken by the Assessee amounts to execution of works contract or not and whether the powder coating work involves transfer of property or not.
The dispute related to powder coating process on the products like yokes, links and tubes etc supplied by local industries like Lucas TVS, Rane Madas and Remi Electricals to the Respondent-Assessee.
The Respondent-Assessee had earlier filed Nil (Returns) stating that the activity carried out by it was only a job work and did not involve any sale i.e. works contract. The Respondent-Assessee was procuring materials, both from local dealer as well as from suppliers located outside the State by making Inter-State purchases for its powder coating activities on job work. The materials procured include chemical’s used for pre-cleaning the materials to remove rust and dust, ‘powder’ used for powder coating, ‘sprays’ for Touch-up purposes etc.
