Ashoka Infroways P Ltd. Vs State Of M.P. & Ors. And Others (Madhya Pradesh High Court)
Madhya Pradesh High Court held that construction of Dewas by-pass road on a [Build, Operate and Transfer] BOT basis is in the nature of works contract and accordingly, commercial tax under the Commercial Tax Act as well as Entry Tax Act leviable.
Facts- The petitioner is a private limited company that entered into the contract of construction, development, strengthening, maintenance and operation of toll roads under the scheme of Build, Operate and Transfer (BOT) floated by the State and the Central Government. The petitioner comes under the definition of “registered dealer” as defined u/s. 2(gg) of the M.P. Entry Tax Act, 1976.
The petitioner constructed the Dewas by-pass and toll tax barriers and started recovering the toll from the vehicles passing through on the said road.
For the period from 01.04.2003 to 31.03.2004, the Assistant Commissioner of Commercial Tax assessed the petitioner under the Commercial Tax Act. According to the petitioner, since all the elements of the sale do not exist, therefore, the petitioner is not liable to get taxed under the Commercial Tax Act as well as the Entry Tax Act. However, the authority determined the toll turnover at Rs.9,93,52,465/- and liable to be levied the tax of Rs.28,88,378/- besides the above Value Added Tax u/s. 9-B of the Commercial Tax Act amounting to Rs.2,33,775/- was also levied. Simultaneously, respondent No.2 also assessed the petitioner under the Entry Tax Act by order of assessment dated 29.12.2006 by determining the entry tax Rs.3,50,460/- with interest of Rs.1,62,964/- u/s. 13 of the Entry Tax Act apart from the penalties, in total, Rs.5,14,424/-.
