Corrtech International Private Limited Vs Commissioner Commercial Tax (Allahabad High Court)
The Allahabad High Court heard a revision petition against the order dated 6 September 2012 passed by the Commercial Tax Tribunal, Saharanpur, in Second Appeal No. 154 of 2010 for Assessment Year 2004-05. The revision raised two principal questions of law: whether the Tribunal was justified in treating the works contract as divisible when the terms indicated a composite, indivisible contract, and whether the Tribunal correctly denied the deduction of goods imported from outside Uttar Pradesh under Section 3F(2)(b)(i) of the U.P. Trade Tax Act.
The petitioner, a private limited company with its principal place of business in Ahmedabad, had entered into a contract with Reliance Industries Ltd., New Bombay, Maharashtra, for supply, installation, and commissioning of a C.P. System at Kanpur, U.P., on 27 March 2024. The estimated value of the contract was ₹34,49,987, while the actual payment received was ₹37,11,351. The petitioner contended that the contract was indivisible, encompassing design, manufacturing, inspection, supply, installation, and commissioning of the system, and not merely the sale of machinery. Goods imported from outside U.P. were delivered with proper Form 31 documentation. The petitioner claimed the benefit under Section 3(F)(2)(b) of the U.P. Trade Tax Act, asserting that the imported goods, used in executing the works contract within U.P., should not attract tax as per Section 3 of the Central Sales Tax Act.
