LARSEN & TOUBRO LIMITEDversusADDITIONAL DEPUTY COMMISSIONER OF COMMERCIAL TAXES & ANR.

                        [2016] 4 S.C.R. 739


                 LARSEN & TOUBRO LIMITED                                 A
                                  v.
 ADDITIONAL DEPUTY COMMISSIONER OF COMMERCIAL
                  TAXES &ANR.
                   (Civil Appeal No. 2956 of2007)                        B
                       SEPTEMBER 05, 2016
    [A.K. SIKRI AND ROHINTON FALi NARIMAN, JJ.)
      Karnataka Sales Tax Act, 1957 - s.6B - Total Turnover -
Computation of - Assessee has been into business of engineers and
contractors and in this process executing projects under works
                                                                         c
contracts and is assigning a part ofjob to sub-contractors to execute
the works contracts - Claim of assessee that the value of work
entrusted to the sub-contractor not to be taken into account while
computing total turnover for the purpose of taxation - Held: The
value of the work entrusted to the sub-contractor or payments made       D
to them shall not be taken into consideration while computing total
turnover for the purposes of s.6B - Karnataka Sales Tax Rules,
1957 - r.6(1)(c) - Andhra Pradesh Value Added Tax Act, 2005 -
s.4(7) - Andhra Pradesh Value Added Tax Rules, 2005 - r.17(1)(a)
- Constitution of India - Art.366(29A)(b).
                                                                         E
     Words and Phrases:
     Sale, taxable turnover, total turnover and turnover - Definitions
discussed in terms of Karnataka Sales Tax Act, 1957.
     Allowing the appeals by assessee and dismissing the appeal
by revenue, the Court                                                    F

      HELD: In view of clause (c) of Sub-rule (1) of Rule 6 of
Karnataka Sales Tax Rules, 1957, total amount paid or payable
to the dealer as a consideration for 'transfer of property in goods',
which is involved in execution of the works contract, is to be
treated as 'total turnover'. This Rule, thus, specifically restricts     G
the total turnover in respect of those goods, alone, where the
property has been transferred. Thus, transfer of property in
goods, becomes necessary event and unless there is a transfer
of nronf'rtv. thf' 11mount naid is not to be included in the total
740              SUPREME COURT REPORTS                      [2016] 4 S.C.R.


A     of property in goods. Therefore, the value of the work entrusted
      to the sub-contractors or payments made to them shall not be
      taken into consideration while computing total turnover for the
      purposes of Section 6-B of the Karnataka Act. As a consequence,
      the two appeals which were filed by the assessee were allowed
      and the appeal preferred by the Revenue was dismissed. [ Paras
B
      17, 18 and 20) (747-F-H; 748-B; 750-B]
              State of Andhra Pradesh & Ors v. Larsen & Toubro
              Limited & Ors. (2008) 9 SCC 191: 2008 (12) SCR
              843 - relied on.
c             The State of Madras v. Gannon Dunkerley & Co.
              (Madra5~ Limited AIR 1958 SC 560 : 1959 SCR 379;
              Builders' Association of India & Ors. v. Union of India
              & Ors. (1989) 2 sec 645 : 1989 (2) SCR 320 -
              referred to.

D                             Case Law Reference
              2008 (12) SCR 843               relied on        Para 6
              1959 SCR 379                    referred to     Para 14
              1989 (2) SCR 320                referred to     Para 14
E             CIVIL APPELLATE JURISDICTION: Civil Appeal No. 2956 of
      2007.
           From the Judgment and Order dated 03 .02.2006 of the High Court
      of Karnataka in STRP No. 44 of 2004
                                       WITH
 F
              C. A. No. 2318 of2013
              C. A. No. 7241 of2016.
            N. Venkatraman, K. N. Bhat, Sr. Advs., D. P. Mohanty, Ms. Sanjana
      Ramachandran, Abhinay, Mis. Parekh & Co., Sanand Ramakrishnan,
 G    V. N. Raghupathy, Parikshit P. Angadi, Advs. for the appearing parties.
              The Judgment of the Court was delivered by
            A.K. SIKRI, J. I. Same parties are entangled in these three
      appeals which arise out of the provisions of the Karnataka Sales Tax
      Act, 1957 (hereinafter referred to as the 'KarnatakaAct'). Two appeals
H
  LARSEN & TOUBRO LIMITED v. ADDITIONAL DEPUTY                                741
 COMMISSIONER OF COMMERCIAL TAXES [A.K. SIKRI, J.]

are, preferred by the assessee, viz. Larsen & Toubro Ltd., and one appeal     A
is filed by the Revenue, i.e. the Sales Tax Department of Karnataka.
      2. The assessee is doing the business of engineers and contractors
and in this process it, inter alia, executes projects under contracts with
public sector undertakings, local bodies as well as the Union and the
State Governments, besides private sector. The assessee is registered          B
under the Karnataka Act and files its returns for payment of sales tax
thereunder. The contracts which are secured by the assessee are the
works contracts and a part thereof is generally assigned to sub-
contractors. For example, in Civil Appeal No. 2956 of2007, the assessee
had secured a contract to construct an indoor stadium styled 'Sree
Kanteerava Indoor Stadium' in Bengaluru and the assessee assigned              c
the work of finding their own materials and laying foam concrete to Ml
s. Lloyd Insulation (India Limited). This sub-contractor was registered
with the Deputy Commissioner of Commercial Taxes, Assessment-IX
City Division, Bengaluru, and accordingly it had submitted returns and
paid taxes for the execution of the works contract and was duly assessed       D
under Sections 5-B and 6-B of the Karnataka Act. A certificate dated
April I 0, 1998 to that effect had been marked before the authorities.
      Likewise, returns are filed by the assessee as well on regular basis.
In the course of the assessment, the assessee submitted that the sub-
contractors were !he parties who executed the works contract and since         E
the transfer of property involved in such execution had already been
taxed, the appellant cannot be taxed again under Section 6-B of the
Karnataka Act there being only one taxable event for the purpose of
Article 366(29A)(b) of the Constitution oflndia. In nutshell, it was the
submission of the assessee that value of the work entrusted to the sub-
contractor could not be taken into account while computing total turnover      F
of the assessee for the purpose of taxation under the Kamataka Act.
This submission of the assessee was, however, negatived by the Assessing
Officer as well as the Karnataka Appellate Tribunal. In the revision
filed under Section 23 of the Karnataka Act, the appellant raised the
following questions:                                                           G
     (i) Is the assessee liable to turnover tax under Section 6-B of the
Karnataka Sales Tax Act, I 957 on the payment made to the sub-
contractor in spite of the fact that the sub-contractor had declared the
turnover and paid taxes?
                                                                               H
742               SUPREME COURT REPORTS                        (2016] 4 S.C.R.



A           (ii) Since the payment made to the sub-contractor does not amount
      to turnover within Section 2(i)(v) of the Karnataka Sales Tax Act, 1957,
      can such payment be part of total turnover as per Section 2( I)( u-2) of
      the Karnataka Sales Tax Act, 1957?
            The High Court decided the aforesaid questions against the assessee
B     and thereby affirmed the view taken by the Appellate Tribunal which
      resulted in dismissing the revision petition of the assessee videjudgment
      dated February 03, 2006. This judgment is the subject matter of challenge
      in Civil Appeal No. 2956 of 2007, which pertains to the Assessment
      Year 1997-1998.
             3. Likewise, for the Assessment Year 2002-2003 (Civil Appeal
c     No. 2318 of2013), the assessee has been meted out the same treatment
      whereby the work awarded to the sub-contractors, who are the registered
      dealers and have paid sales tax in respect of the works undertaken by
      them, has been added in the total turnover of the assessee for the purposes
      of levying tax. However, here the matter is remanded to the Assessing
D     Officer for ascertaining the liability of the assessee under Section 5-B
      as well as Section 6-B of the Karnataka Act in respect of total turnover
      of the assessee.
             4. On the other hand, outcome of the proceedings in respect of
      the Assessment Year 1999-2000 (Civil Appeal No. 7241 of 2016) has
      taken a U-turn. For this Asse~sment Year, though the Assessing Officer
E
      as well as the Appellate Tribunal had included the cost of work awarded
      to the sub-contractors, the High Court has held that value of the work
      awarded to the sub-contractors cannot be included for computing the
      total turnover of the assessee and has, thus, allowed the revision petition
      preferred by the assessee. Against that order, the Revenue is in appeal.
 F           5. The aforesaid briefresume of the three appeals makes it clear
      that the question of law involved in all these three cases is the same,
      though the two sets ofjudgments of the High Court are contrary to each
      other.
            6. It may be pointed out at this juncture itself that in the case of
 G    this very assessee same question oflaw had arisen, albeit in the context
      of Andhra Pradesh Value Added Tax Act, 2005 (hereinafter referred to
      as the 'Andhra Pradesh Act'). This Court has decided the issue in its
      judgment known as State of A11dlm1 Pradesh & Ors. v. Larse11 &
      Toubro Limited. & Ors. 1 (hereinafter referred to as 'Andhra Pradesh
H
      1
          (2008J 9 sec 191
  LARSEN & TOUBRO LIMITED v. ADDITIONAL DEPUTY                                  743
 COMMISSIONER OF COMMERCIAL TAXES [A.K. SIKRI, J.]

judgment'). The question oflaw is answered in favour of the assessee.           A
Taking aid of the said judgment, the assessee has argued that the instant
appeals should be decided in its favour. On the other hand, plea of the
Revenue is that that view taken by the High Court, which is in favour of
the Revenue, is the correct view and should be maintained having regard
to the provisions of the Karnataka Act. The endeavour of the Revenue
                                                                                 8
is to demonstrate that the provisions of the Andhra Pradesh Act are
materially different than that of the Karnataka Act and, therefore, the
judgment in the Andhra Pradesh case need not be followed.
     Before adverting to the aforesaid judgment of this Court, it would
be advisable to take note of the various provisions of the Karnataka
Act.
                                                                                 c
      7. For our purposes, definitions of 'sale', 'taxable turnover',
'total turnover' and 'turnover' are material, which are reproduced
below:
         "2(i)(t) "Sale" with all its grammatical variation and cognate          D
         expressions means every transfer of the property in goods (other
         than by way of a mortgage, hypothecation, charge or plede) by
         one person to another in the course of trade or business for cash
         or for deferred payment or other valuable consideration, and
         includes,-
                                                                                 E
            (i) a transfer otherwise than in pursuance of a contract of
            property in any goods for cash, deferred payment or other
            valuable consideration;
            (ii) a transfer of property in goods (whether as goods or in
            some other form) involved in the execution of a works
                                                                                 F
            contract;
         2(i)(u-l) "Taxable turnover" means the turnover on which a
         dealer shall be liable to pay tax as determined after making such
         deductions from his total turnover and in such manner as may be
         prescribed, but shall not include the turnover of purchase or sale
                                                                                 G
         in the course of inter-State trade or commerce or in the course of
         export of the goods out of the territory oflndia or in the course of
         import of the gods into the territory oflndia;
         ( u-2) "Total turnover" means the aggregate turnover in all goods
         of a dealer at all places of business in the State, whether or not
                                                                                 H
744               SUPREME COURT REPORTS                         [2016) 4 S.C.R.



A           the whole or any portion of such turnover is liable to tax, including
            the turnover of purchase or sale in the course of inter-State trade
            or commerce or in the course of export of the goods out of the
            territory of India or in the course of import of the goods into the
            territory oflndia;
B           (v) "Turnover" means the aggregate amount for which goods are
            bought or sold, or supplied or distributed or delivered or otherwise
            disposed of in any of the ways referred to in clause (t) by a dealer,
            either directly or through another, on his own account or on account
            of others, whether for cash or for deferred payment or other
            valuable consideration."
c
            8. Since we are dealing with the sales tax under the Karnataka
      Act, obviously the said tax is on 'sale'. 'Sale' is defined as transfer of
      the property in goods by one person to another in the course of trade or
      business for consideration and it, inter alia, includes a transferof property
      in goods (whether as goods or in some other form) involved in the
D     execution of a works contract. Thus, even in respect of works contract
      whenever there is a transfer of property in goods, that is deemed as
      'sale'.
            9. An essential element to constitute a transaction as 'sale' is the
      transfer of property in goods. Aggregate amount for which the goods
 E    are bought or sold, or supplied or distributed or delivered or otherwise
      disposed of, in any of the ways referred to under Section 2(t), by a
      dealer is treated as 'turnover' within the meaning of Section 2(v) of the
      Kamataka Act. There are two variants of this turnover known as
       'taxable turnover' and 'total turnover', the definitions whereof are
 F    already reproduced above. 'Total turnover' is defined as aggregate
      turnover in all goods of a dealer at all places of business in the State.
      However, from this aggregate turnover, certain deductions are permissible
      under the provisions of the Karnataka Act and when those deductions
      are allowed from the total turnover, we get 'taxable turnover' on which
      a dealer is liable to pay tax.
 G
           10. Section 5-B of the Karnataka Act is the charging section in
      respect of execution of the works contract and it reads as under:
                "5-B Levy of tax on transfer of property in goods (whether
                as goods or in some other form) involved in the execution
                of works contracts - Notwithstanding anything contained in sub-
H
  LARSEN & TOUBRO LIMITED v. ADDITIONAL DEPUTY                                745
 COMMISSIONER OF COMMERCIAL TAXES [A.K. SIKRI, J.]

      section (I) or sub-section (3) or sub-section (3-C) of Section 5,       A
      but subject to sub-section (4), (5) or (6) of the said section, every
      dealer shall pay for each year, a tax under this act on his taxable
      turnover of transfer of property in goods (whether as goods or in
      some other fonn) involved in the execution of works contract
      mentioned in column (2) of the Sixth Schedule atthe rates specified
                                                                               B
      in the corresponding entries in column (3) of the said Schedule."
      11. There is a levy of turnover tax as well, which is provided
under Section 6-B of the Karnataka Act. At the relevant time, this
provision was in the following fonn:
      "6-B Levy of Turnover Tax. - (I) Every registered dealer and             c
      every dealer who is liable to get himself registered under sub-
      section (I) and (2) of Section I 0 whose total turnover in a year is
      not less than the turnovers specified in the said sub-sections,
      whether or not the whole or any portion of such turnover is liable
      to tax under any other provisions of this Act, shall be liable to pay
      tax. -                                                                   D

         (i) at the rate of one and half per cent of the total turnover, if
         the total turnover is not more than one thousand lakh rupees in
         a year; or
          (ii) at the rate of three per cent of the total turnover, if the     E
          total turnover is more than one thousand lakh rupees in a year;
      Prov_ided that the rate of tax payable for any year shall be at one
      and half per cent on the turnovers up to one thousand lakh rupees
      and at three per cent on the turnovers exceeding one thousand
      lakh rupees, if, the total turnover in the year immediately preceding
                                                                               F
      that year was not more than one thousand lakh rupees."
       12. On a plain reading of Sections 5-B and 6-B of the Karnataka
Act, it can be seen that Section 5-B deals with levy of tax on transfer of
property in goods involved in the execution of the works contract. It is,
thus, a special provision made for imposing sales tax on works contract
                                                                               G
and tax is payable on 'taxable turnover of transfer of property in
goods'. Additionally, in those cases where total turnover of a registered
dealer in an year is not less than the turnover specified in sub-sections
(I) and (2) of Section 10, such a dealer is liable to pay tax at the rate
specified in Section 6-B of the Karnataka Act.
                                                                               H
746             SUPREME COURT REPORTS                            [2016] 4 S.C.R.



A           13. The question for determination is: for calculating the turnover
      for the purpose of payment of turnover tax under Section 6-8 of the
      Karnataka Act, whether payments made to sub-contractor are to be included
      while calculating the total turnover?
            14. Mr. N. Venkatraman, learned senior counsel appearing for the
B     appellant/assessee, made a fervent plea for not including such payments
      made to the sub-contractor, as component of total turnover, because of
      the reason that the sales tax is payable on the transfer of property and the
      'turnover' also meant aggregate amount for which goods are bought or
      sold, etc. Therefore, transfer of property in goods was the necessary
      concomitant in ascertaining the sale and, thus, in the process calculating
c     the turnover/total turnover. It was submitted that there was no sale of
      goods involved in the execution of a works contract as in such contracts
      the property does not pass as movables. Tracing the history of works
      contract, the learned senior counsel submitted that in the case of Tile Stute
      ofMadras v. Gunnon Dunkerley & Co.(Mudrcts) Limitell-, while speaking
D     of a building contract, this Court held that the property in goods involved
      in the execution of a works contract does not pass as movables but on the
      theory of accretion on the principle quicquid plantatur solo, solo cedit, i.e.
      whatever is attached to the soil, becomes part of it. The Constitution
      (Forth-Sixth Amendment) Act, 1982 inserted Article 366(29-A)(b) to
      neutralise the judgment in Gumwn Dunkerley & Co. only to the extent
E     that an indivisble contract was deemed to be divisible and did not undo the
      principle. He argued that this Court, interpreting Article 366(29-A)(b) in
      Builders'Association ofIndia & Ors. v. Union oflmliu & Ors. 3, reiterated
      that in a works contract property in goods passes out as movable but on
      the theory of accretion. It was further submitted that the property passes
      by accession just once which, by a fiction, is taxed as a sale. The Article
 F
      also identifies the transferor and transferee effecting the deemed sale and
       deemed purchase. The taxable person is the contractor executing the works
       contract so that the main contractor, who assigns the work to another
       person to execute the work, cannot be a transferor, nor any property in
       goods vest in the main contractor, when the contract is executed by a sub-
 G     contractor.
            15. Proceeding further, by taking the aforesaid line of argument,
      the learned senior counsel submitted that if the point of view of the
      Revenue is accepted, it would amount to double taxation inasmuch as
      2 AIR 1958 SC 560

H     '{1989) 2 sec 645
  LARSEN & TOUBRO LIMITED v. ADDITIONAL DEPUTY                             747
 COMMISSIONER OF COMMERCIAL TAXES [A.K. SIKRI, J.]

sub-contractors were also registered dealers who had paid sales tax A
under the KarnatakaAct and by including the payments made to them in
the total turnover of the assessee, tax was sought to be levied on the
same amount all over again. On the aforesaid premise, the learned
senior counsel for the assessee submitted that precisely this argument in
law has been accepted by this Court in the Andhra Pradesh judgment.
                                                                              B
He referred to the discussion contained in the said judgment in extenso.
      16. Mr. K.N. Bhat, learned senior counsel appearing for the~
Revenue, per contra, heavily relied upon the reasoning given by the High
Court in the judgment which has taken the view in favour of the Revenue.
He submitted that one had to keep in mind the distinction between Section
5-B and Section 6-B of the Karnataka Act by pointing out that when it c
comes to levy of turnover tax, it speaks of 'total turnover', whereas tax
payable under Section 5-B is on the 'taxable turnover'. He submitted
that since we are concerned with the levy of tax under Section 6-B of
the Karnataka Act, total turnover becomes relevant and, therefore, the
value of the work entrusted to the sub-contractors is includible at the
                                                                              D
hands of the assessee. He further submitted that the High Court was
right in pointing out that sales tax is leviable at a single point, whereas
turnover tax is leviable at a multi-point, both at the hands of the main
contractor and sub-contractor and, therefore, the question of double
taxation does not arise.
       17. After bestowing our due consideration to the respective E
submissions, we find that the position taken by the assessee has to prevail,
which appears to be meritorious. This result follows even from the
 bare perusal of the Karnataka Act and Rules. For this purpose, it
 becomes important to refer to clause (c) of sub-Rule (I) of Rule 6 of the
 Karnataka Sales Tax Rules, 1957. Rule 6 deals with determination of F
total and taxable turnover and clause (c) reads as under:
       "6. Determination of total and taxable turnover. - ( 1) The
        total turnover of a dealer, for the purposes of the Act, shall be the
        aggregate of. -
        xx                           xx                      xx
        ( c) the total amount paid or payable to the dealer as the G
        consideration for transfer of property in goods (whether as'"goods
        or in some other form) involved in the execution of works contract;
        and includes any amount paid as advance to the dealer as a part
        of such consideration.
        xx                           xx                      xx"              H
748            SUPREME COURT REPORTS                           [2016] 4 S.C.R.


A           18. What is significant is that total amount paid or payable to the
      dealer as a consideration for 'transfer of property in goods', which is
      involved in execution of the works contract, is to be treated as 'total
      turnover'. This Rule, thus, specifically restricts the total turnover in
      respect of those goods, alone, where the property has been transferred.
      Thus, transfer of property in goods, becomes necessary event and unless
B
      there is a transfer of property, the amount paid is not to be included in
      the total turnover. The amount paid to the sub-contractor is not for
      transfer of property in goods. When matter is examined from this angle,
      the ratio laid down by this Court in the Andhra Pradesh judgment clearly
      applies inasmuch as in that case also the Court noticed that Section 4(7)
c     of the Andhra Pradesh Act indicated that the taxable event is the transfer
      of property in goods involved in the execution of a works contract and
      the said transfer of property in such goods takes place when the goods
      are incorporated in the works. The Court held that the value of the
      goods which constitute the measure for the levy of tax is the value of
      goods at the time of the incorporation of the goods in the works. The
D
      Court further found that same was the position contained in Rule 17( I )(a)
      of the Andhra Pradesh Value Added Tax Rules, 2005.
            19. It is not in dispute that the facts and the issue involved were
      identical, i.e. the assessee had assigned parts of the construction work
      to sub-contractors who were registered dealers. These sub-contractors
E     had purchased goods and chattels like bricks, cement and steel and,
      where necessary, supply and erect equipments such as lifts, hoists, etc.
      The materials were brought to the site and they remain the property of
      the sub-contractor. The site was occupied by the sub-contractor and the
      materials were erected by the sub-contractor. In this backdrop, after
 F    taking note of some provisions of the Andhra Pradesh Act, the Court
      explained the legal position in the following manner:
            "16. By virtue of Article 366(29-A)(b) of the Constitution, once
            the work is assigned by the contractor (L&T), the only transfer
            of property in goods is by the sub-contractor(s) who is a registered
            dealer in this case and who claims to have paid taxes w1der the
G
            Act on the goods involved in the execution of the works. Once
            the work is assigned by L&T to its sub-contractor(s ), L&T ceases
            to execute the works contract in the sense contemplated by Article
            366(29-A)(b) because property passes by accretion and there is
            no property in goods with the contractor which is capable of a
H           retransfer, whether as goods or in some other form.
 LARSEN & TOUBRO LIMITED v. ADDITIONAL DEPUTY                               749
COMMISSIONER OF COMMERCIAL TAXES [A.K. SIKRI, J.]

   17. The question which is raised before us is whether the turnover       A
   of the sub-contractors (whose names are also given in the original
   writ petition) is to be added to the turnover of L&T. In other
   words, the question which we are required to answer is whether
   the goods employed by the sub-contractors occur in the form of a
   single deemed sale or multiple deemed sales. In our view, the
                                                                            B
   principle oflaw in this regard is clarified by this Court in Builders'
   Assn. of India as under: (SCC p. 673, para 36)
   ~'36 ... Ordinarily unless there is a contract to the contrary in
   the case of a works contract, the property in the goods used in the
   construction ofa building passes to the ownerofthe land on which
   the building is constructed, when the goods or materials used are         c
   incorporated in the building."
                                          (emphasis supplied by us)
   18. As stated above, according to the Department, there are two
   deemed sales, one from the main contractor to the contractee
   and the other from sub-contractor(s) to the main contractor, in           D
   the event of the contractee not having any privily of contract
   with the sub-contractor(s).
   19. If one keeps in mind the abovequoted observation of this
   Court in Builders' Assn. of India the position becomes clear,
   namely, that even if there is no privity of contract between the          E
   contractee and the sub-contractor, that would not do away with
   the principle of transfer of property by the sub-contractor by
   employing the same on the property belonging to the contractee.
   This reasoning is based on the principle of accretion of property
   in goods. It is subject to the contract to the contrary. Thus, in our     F
   view, in such a case, the work executed by a sub-contractor, results
   in a single transaction and not as multiple transactions. This
   reasoning is also borne out by Section 4(7) which refers to the
   value of goods at the time of incorporation in the works executed.
   In our view, if the argument of the Department is to be accepted,
   it would result in plurality of deemed sales which would be contrary      G
   to Article 366(29-A)(b) of the Constitution as held by the impugned
   judgment of the High Court. Moreover, it may result in double
   taxation which may make the said 2005 Act vulnerable to challenge
   as violative ofArticles 14, 19(1 )(g) and 265 of the Constitution of
   India as held by the High Court in its impugned judgment."                H
750            SUPREME COURT REPORTS                          [2016] 4 S.C.R.


A          This raison d'etre shall apply, in full force, while answering the
      question even in the context of the Karnataka Act.
            20. We, therefore, hold that the value of the work entrusted to the
      sub-contractors or payments made to them shall not be taken into
      consideration while computing total turnover for the purposes of Section
B     6-B of the Karnataka Act. ·As a consequence, the two appeals which
      are filed by the assessee are allowed and the appeal preferred by the
      Revenue is dismissed. In the facts and circumstances of the case, there
      shall be no order as to costs.
      Ankit Gyan                                             Appeals disposed of.
c