9911796707
TMI Blog2009 (9) TMI 903X X X X Extracts X X X X X X X X Extracts X X X X ..... sustaining the first appellate order wherein the appellate authority held that the rate of tax payable on the sale of timber and plywood involved in the execution of works contract is at two per cent as against eight per cent assessed under item Nos. 18 and 19 of the Fourth Schedule to the Kerala General Sales Tax Act, 1963. We have heard Government Pleader appearing for the petitioner and counse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hether tax payable is at the rate of 2.5 per cent or two per cent as provided in the Fifth Schedule or at the rate of eight per cent as provided in entries 18 and 19 of the Fourth Schedule to the KGST Act. In order to consider the question raised, we have to necessarily refer to the charging section on works contract which as contained in section 5(1)(iv) is as follows: 5. Levy of tax on sale ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... said Schedule: . . . It is clear from sub-clause (a) of clause (iv) above that tax on goods is payable at the rate prescribed under First, Second or Fifth Schedule only when the transfer of goods in the execution of works contract takes place in the same form. The respondent has no case that the timber and plywood purchased are sold or supplied as such to the awarders. Normally timber and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der the Fifth Schedule. The contention of the counsel for the respondent is that by virtue of the judgment abovereferred, tax on works contract is payable on the value of the goods and not on the intermediary products. We do not think there is any scope for considering this issue because it has no bearing on the rate of tax applicable and this issue has probably relevance in the determination of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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