C.I.T-XVII, Delhi vs Silver Oak Laboratories P. Ltd.

On examining the terms and conditions and also on examination of the invoices, purchase orders as well as the challans indicating payment of excise duty, we are of the view that there is no material on record to indicate that the transaction in question is a "contract for carrying out works". Hence, Section 194C of the Income Tax Act, 1961, [''Act'', for short] is not attracted. Our attention, in fact, is invited to the amendment in Section 194C of the Act vide Finance (No. 2) Act, 2009, with effect from 1st October, 2009, which defines "work" to include manufacturing or supplying a product according to the requirement or specification of a customer by using material purchased from such customer. In fact, it is clarified that the definition of the word "work" will not include manufacturing or supplying a product according to the requirement or specification of a customer by using material purchased from a person other than such customer. However, this amendment came into force only with effect from 1st October, 2009, which will not apply to the period in question in the present case(s).

For the aforestated reasons, we find no reasons to interfere with the impugned judgments of the High Court. The special leave petitions are, accordingly, dismissed.