Present for the Applicant : Shri Ramesh Kathuria, Advocate
Present for the Department : Shri Nitya Nand, DR
The above named applicant has filed this application u/s 84 of the Delhi Value Added Tax Act, 2004 (herein after referred to as the “said Act”) and the question put up before this Court for determination under the aforesaid provision of law is as under :
“Whether goods (Compactors) manufactured at Mumbai (Maharashtra) and sent to Delhi after charging full rate of tax in the course of Inter-State Trade & Commerce and then insalled in Delhi is Interstate Sale from Mumbai or amounts to Works Contract in Delhi and liable for deduction of tax at source by contractee?”
2. The application for determination has been made in the prescribed format DVAT-42 and the requisite fee of Rs.500/- paid through Demand Draft No.957371 dated 19-3-2008.
3. The Applicant is engaged in the business of manufacturing and sale of Compactors and is registered under the Maharashtra Value Added Tax Act, 2002 and Central Sales Tax Act, 1956 having its office at 39/202, Maryland Corner, Sion (East), Mumbai – 400 022. It is stated that the Applicant supplies the goods (Compactors) and installs the same at the customer’s site. As stated by the applicant no material is required at the site to install the Compactors. It is further stated that the Applicant charges appropriate Excise duty, Cess, Service Tax and CST on each and every invoice raised from the factory (Mumbai).
4. Shri Ramesh Kathuria, Advocate filed copies of invoices raised by the Applicant and explained that no separate charges are billed for labour cost for installation of the compactors. He further stated this Court has already determined the issue under consideration in the case of M/s.B.P.Ergo Ltd. vide order No.172/CDVAT/2007/155 dated 4.10.2007, a copy of which was also filed by him.
5. The D.R. pointed out that the Applicant supplies Compactors from its factory at Mumbai and installs the same at the customer’s site and CST thereon is paid in the originating State. In the process of installation of Compactors no material is required and hence it is an Inter State sale.
6. I have perused in detail the application filed u/s 84 of the Act and heard both the parties. After going through the documents on record and the arguments put forth, I am of the opinion that Compactors manufactured by the Applicant at Mumbai, Maharashtra and sent to Delhi after charging full rate of tax is Interstate Sale from Mumbai to Delhi. It is not covered under Works Contract under the DVAT Act, 2004 and the contractee is not liable to deduct TDS under the Act.