2009 (7) TMI 1168 - HC - VAT and Sales Tax

Summary

Issues: Interpretation of section 7(7) of the Kerala General Sales Tax Act, 1963 regarding payment of tax at compounded rate for construction of culverts and boat jetties.

The judgment by the Kerala High Court addressed the issue of whether contractors are entitled to payment of tax at the compounded rate under section 7(7) of the Kerala General Sales Tax Act, 1963 for the construction of culverts and boat jetties. The court considered the amendment introduced by the Finance Act, 2004, which included an Explanation to section 7(7) defining "civil works" to cover various constructions, including culverts. The court analyzed previous decisions, including one regarding a culvert not being considered a civil work. However, the court determined that a culvert can be equated to a mini bridge and falls within the definition of "bridge" under section 7(7), entitling contractors to payment of tax at the compounded rate. The judgment also referenced a separate decision regarding boat jetties, where it was held that they qualify as civil works under section 7(7). Therefore, the court overruled previous decisions and allowed the revision cases, directing the assessing officer to complete the assessment at the compounded rate for the construction of culverts and boat jetties.