M.R. SHAH, J.

1. By way of this petition under Article 226 of the Constitution of India, the petitioner – dealer has prayed to quash and set aside the impugned order dated 4.10.2006 passed by the learned Gujarat Value Added Tax Tribunal (hereinafter referred to as the “Tribunal”) as well as order passed by the Deputy Commissioner of Income Tax demanding the tax, penalty and interest under the provisions of Gujarat Sales Tax Act, 1969, for the Financial Years 2001-02 and 2002-03.

2. The facts leading to the present Special Civil Application in nutshell are as under:

2.1. According to the petitioner original petitioner Essar Construction Limited a Public Limited Company registered and incorporated under the provisions of Companies Act, 1956 was engaged, inter alia, in the business of Turnkey Engineering, Procurement and Construction Projects. The said business includes among other activities, the activity of laying pipelines, inter alia, for supply of water. That the original petitioner was holding a registration certificate under the Gujarat Sales Tax Act, 1969 as well as under the Central Sales Tax Act, 1956.

2.2. The dispute is with respect to the execution of three pipelines contracts undertaken and completed by the original petitioner Essar Construction Limited, in the State of Gujarat pursuant to; (i) the two Work Orders, both dated 23.4.2001, issued by the Gujarat Water Supply and Sewerage Board (hereinafter referred to as the “Board”), and (ii) one Work Order dated 18.08.2001 issued by the Engineering Projects (India) Limited (hereinafter referred to as the “EPIL”), all in the name of Essar Projects Limited, which Work Orders were subsequently transferred to the original petitioner by Essar Projects Limited. The works were known as NC6, NC7 and NC12 respectively. NC6 was for laying pipelines between Morbi and Maliya in District Rajkot involving a distance of 26 kms for a lump sum price of Rs.76,76,50,000/-payable by the Board to the original petitioner. NC7 was for laying pipelines between Morbi and Tankara in District Rajkot involving a distance of 34 kms for a lump sum price of Rs.95,88,55,180/. NC12 was for laying pipelines from Tankara to Gauridad in District Rajkot involving a distance of 26 kms for a lump sum price of Rs.48,11,73,000/-payable by EPIL to the original petitioner under a sub-contract.

2.3. According to the original petitioner, the said work orders/contracts were “Engineering, Procurement and Commissioning” contracts on EPC/Turnkey basis. According to the original petitioner, as per the terms of the contracts, the petitioners were required to design and build all works under the contracts as per the prescribed specifications and operate and maintain the projects on completion for a period of two years. According to the petitioner, the scope of the works included designing, engineering, procuring, constructing, completing, commissioning operating and maintaining the whole of the said works for two years from the date of commissioning. According to the petitioner, amongst other things, the contracts stipulated that the pipe material shall consist of mild steel pipe, made of mild steel confirming to BIS2062 Grade” B” Fe 410 or spirally welded or longitudinally welded pipes confirming to BIS2589 and that the price of Mild Steel Plats/H.R.Coils to remain firm and fixed during the contracted periods.

2.4. It appears that on or about 4.6.2002, the original petitioner applied to the Assistant Sales Tax Commissioner, Rajkot, for issuance of two, “No TDS Certificates”, one in respect of NC6 and NC7 and another in respect of NC12 as provided in Section 57B(4)(a) of the Gujarat Sales Tax Act (hereinafter referred to as the “Act”) on the ground that it is not liable to pay any sales tax in respect of the said works. In support of the said application, the petitioner furnished to the Assistant Commissioner