9911796707
TMI Blog2003 (8) TMI 502X X X X Extracts X X X X X X X X Extracts X X X X ..... of works contract not in the form of goods but only in some other form, the transfer of such materials cannot be subjected to tax under the Act for the three assessment years in question. The assessee also contended that it is entitled to the benefit of compounding provided under section 7 of the Act. The assessing authority rejected both the contentions and brought the materials transferred in the execution of the works contract to tax under the Act. The benefit of compounding available under section 7 of the Act was also denied. Being aggrieved by the said assessment orders the revision-petitioner filed appeals before the Deputy Commissioner (Appeals), Commercial Taxes, Ernakulam. All the three appeals were heard together and a common or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... other form only by the amendment to the relevant provisions of the Act made with effect from July 1, 1987. Counsel pointed out that amendments to the definitions of "goods", "sale" and "turnover" specifically mentioning about the transfer of goods in "some other form" was made effective from July 1, 1987 only. Counsel also submits that but for the provisions of section 5(1)(iv) which specifically provides for levy of tax on the transfer of goods in "some other form" the respondents have no authority to levy tax on the transfer of goods involved in the execution of works contract in some other form. Counsel also pointed out that the corresponding amendments to the relevant rules were also made effective from July 1, 1987 only. 4.. Learne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... contract is not in the form of goods but in some other forum, the same cannot be assessed to tax under the Act in the absence of provisions in the Act specifically enabling the assessment on the turnover of materials transferred in the execution of works contract in some other form. In order to appreciate the correctness of the contention raised by the assessee it is necessary to refer to the relevant provisions of the Act as also the provisions of the Constitution of India as it stood during the assessment years 1984-85, 1985-86 and 1986-87. By the Constitution 46th amendment clause (29A) containing sub-clauses (a) to (f) was inserted in article 366 of the Constitution. As per sub-clause (b) of clause (29A) the scope of entry 54 of List I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eivable by the dealer for carrying out such contract less such portion representing labour charges as may be prescribed. Section 2(xxix-a) defines "works contract" to mean any agreement for carrying out for cash or for deferred payment or other valuable consideration, the construction, fitting out, improvement or repair of any building, road, bridge or other immovable property or the fitting out, improvement or repair of any movable property. Section 5, which is the charging provision, states that every dealer (other than a casual trader or agent of a non-resident dealer) whose total turnover for a year is not less than one lakh rupees and every casual trader or agent of a non-resident dealer, whatever be his total turnover for the year, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 366 by inserting clause (29A) and since necessary amendments have been made to the provisions of the Act enabling assessment of the turnover of goods transferred in the execution of works contract even though the statute did not specifically say (whether in the form of goods or in some other form) the contention of the petitioner that no assessment can be made in respect of the transfer of the materials involved in the execution of works contract not in the form of goods, but in some other form, cannot be accepted. The only limitation for assessing the turnover of materials which have been transferred in execution of the works contract is subject to the various disciplines provided under the Constitution, the Central Sales Tax Act and und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the execution of works contract. We are of the view that there is no merit in the contention of the petitioner that the assessment of the materials transferred in the execution of works contract in the instant case is without authority of law. We are in full agreement with the assessing authority and the two appellate authorities that the turnover of materials transferred in the execution of works contract is liable to be assessed under the Act subject to the disciplines provided under the Constitution, the Central Sales Tax Act and under the Kerala General Sales Tax Act. In the instant case there is no such inhibition. In the circumstances, there is no merit in these revision petitions. They are accordingly dismissed. Petitions dismissed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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