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TMI Blog2009 (3) TMI 943X X X X Extracts X X X X X X X X Extracts X X X X ..... als and the fabrication cost to make the product namely, rolling shutter. In other words, first rolling shutter is fabricated as a product, though against specific order, and thereafter it is transferred by fixation in the customer's premises making it operational or functional as a rolling shutter. We are of the view that the ratio of decision of the Supreme Court in Kone Elevators' case [2005 (2) TMI 519 - SUPREME COURT OF INDIA] applies squarely to the facts of the appellant's case. We, therefore, uphold the order of the Commissioner and dismiss the appeal. - O.T. Appeal. No. 11 of 2008 - - - Dated:- 25-3-2009 - RAMACHANDRAN NAIR C.N. AND SURENDRA MOHAN K. , JJ. The judgment of the court was delivered by C.N. RAMACHANDRAN N ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Kone Elevators (India) Ltd. [2005] 140 STC 22; [2005] 3 SCC 389 and in Hindustan Shipyard Ltd. v. State of Andhra Pradesh [2000] 119 STC 533; [2000] 6 SCC 579 and contended that fabrication and installation of rolling shutters is nothing but sale of goods which will attract tax at the rate of 12.5 per cent as held by the Commissioner in the impugned order. Section 6(1) which is the charging section under the KVAT Act is as follows: Section 6. Levy of tax on sale or purchase of goods. (1) Every dealer whose total turnover for a year is not less than ten lakhs rupees and every importer or casual trader or agent of a non-resident dealer, or dealer in jewellery of gold, silver and platinum group metals or silver articles or contractor or an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s tenable or not. Section 8 of the KVAT Act provides for payment of tax at compounded rate, which under clause (a) provides for payment of tax at compounded rate in respect of works contract as follows: Section 8. Payment of tax at compounded rates. Notwithstanding anything contained in section 6, (a)(i) any works contractor not being a dealer registered under the provisions of the Central Sales Tax Act, 1956 (Central Act 74 of 1956), and who is not an importer may, at his option, instead of paying tax in accordance with the provisions of the said section, pay tax at three per cent of the whole contract amount; (ii) any works contractor not falling under clause (i) above may, at his option, instead of paying tax in accordance wit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... SCC 389 and in the Hindustan Shipyard's case [2000] 119 STC 533; [2000] 6 SCC 579 referred above, held that a lift fabricated and installed at the premises of the customer and a ship fabricated and supplied in terms of the design and requirement of the customers answer the description of sale of goods. The rolling shutter is no doubt fabricated in the factory of the contractor and it's installation is only a simple job of nailing it or fixing it in the customer's premises. In fact, the dimension of the space where rolling shutter is to be installed is taken in advance and the rolling shutter is fabricated with the length and width required for the customer. We are in complete agreement with the Commissioner's finding that t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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