Bocw
gilgonde
(Querist) 13 March 2013
This query is : Resolved
The pipes are moved from one state to another state under the payment of Central Sales Tax for which the buyer has issued ‘C’ form. The renowned lawyer has opinioned that ince the pipes are manufactured in factory covered under Factories Act and used by the same contractor i.e. the pipe manufacturer for executing pipeline contract in another state, the value only attributable to Lowering, Laying, Jointing, Testing of the pipeline will cover under BOCW Act and hence, the BOCW is not applicable on pipes supplied from one state to another state, even if, they are used by the same manufacturer of pipes for Lowering, Laying, Jointing and Testing contract undertaken though it is indivisible contract. The owner of the contract has accepted this and asked the manufacturer cum contractor to submit an undertaking for any eventuality of the contention being not accepted by BOCW Authorities and the liability to settle the issue remains with the manufacturer cum contractor. They have provided such undertaking to the owner. After some time, owner has obtained another opinion from a Lawyer and hence, the matter is still unresolved. The manufacturer cum contractor has again approached the Lawyer who has given his earlier opinion and according to his conversation, he has reiterated his position and even further added that since this pipeline is forming part of plant and machinery for power generation and being an essential part of the total power generation project, the BOCW Act is not applicable on the same. He being retainer with the owner who was restrained him for giving any such opinion to the manufacturer cum contractor and hence, we seek your advise as follows :
1)Is the BOCW Act is applicable to the pipeline contract?
2)If yes, is it applicable only on the civil portion of the pipeline contract i.e. Lowering, Laying, Jointing, Testing etc.?
3)Is the pipe value from the contract is deductable while arriving at BOCW applicable amount? If yes, kindly give us your valuable inputs on this. If No, what are the reasons?
Devajyoti Barman
(Expert) 13 March 2013
The Rules and Regulations differs from one State to another.
You better consult local advocate.
Raj Kumar Makkad
(Expert) 14 March 2013
Your query is required to be posted either in Business head or in Taxation head instead of others.
