Doctrine of Partial Merger again upheld by Hon’ble Haryana Tax Tribunal

Puneet Agrawal (Partner, ALA Legal) &
Gaurav Gupta ( Associate, ALA Legal)

In a much needed relief to assessees engaged in construction business, the Hon’ble Haryana Tax Tribunal has held that cost of consumables such as fuels used in hot mix plant for the purpose of execution of works contract, is liable to be deducted from the taxable turnover. The said view emerged based on the Supreme Court Judgment in the case of Gannon Dunkerely and Rule 25(2) read with Rule 25(3) of the Haryana Value Added Tax Rules.

Further, the Hon’ble Tribunal has held that once issue regarding taxability of bitumen has attained finality in the assessment order and appeal preferred by Assessee is on other issues, then the period of limitation for Department to revise the issue of rate of tax on bitumen, would start from the date of assessment order and not from the appellate or remand order.

Issue of Limitation

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