HC quashes order of Sales
Tax Tribunal directing pre-deposit as a condition for granting stay against
recovery of tax pending statutory appeal; Notes that dispute arose with respect
to taxability of pipeline replacement works contract undertaken for ONGC at
offshore platforms located beyond territorial waters; Observes that Tribunal
had rendered a prima facie opinion that in respect of sales effected to ONGC,
in case the goods were appropriated to contract at supply base viz. port of
import, then assessee was liable to tax as sale was completed within the State,
while referring to SC ruling in ABB Ltd and Bombay HC decision in Raj Shipping;
Stating that applicability of nexus theory to facts and circumstances in
present case was a highly debatable issue, HC observes, if Tribunal was
required to refer to not only the legal principles but eventually determine
their applicability on the basis of terms and conditions of contract, there was
no reason to impose any condition of part payment; Legal position, as was emerging
from the judgments rendered in two distinct cases, viz. a sale and by applying
nexus theory to it or a sale in course of execution of a works contract, needed
a deeper consideration which justified an unconditional stay of recovery,
states HC while directing Tribunal to decide the matter finally within
specified period : Bombay HC
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