9911796707
TMI Blog2009 (10) TMI 873X X X X Extracts X X X X X X X X Extracts X X X X ..... not claimed the concessional rate. The beneficiary has not claimed because the contract does not provide payment of tax at concessional rate which means that full rate of tax is loaded in contract amount. We therefore hold that the petitioner's claim is neither bona fide nor tenable. Consequently, we uphold the order of the Tribunal confirming the assessment and dismiss the S.T. Revision cases. - 225, 226, 233 of 2009 - - - Dated:- 22-10-2009 - RAMACHANDRAN NAIR C.N. AND MOHANAN V.K. , JJ. ORDER:- The order of the court was made by C.N. RAMACHANDRAN NAIR J. The question raised in the connected revision cases filed by the petitioner is whether the Tribunal was justified in declining the concessional rate claimed by the pet ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... full satisfaction of the KSE Board. The work was executed in the course of three years, 2002-03, 2003-04 and 2004-05. Since the work is admittedly works contract, the petitioner offered to remit tax at the compounded rate provided under section 7(7A) of the KGST Act which provides for payment of tax at 70 per cent of the rate of tax provided for the work in the Fourth Schedule to the KGST Act on the total contract amount. The assessing officer accepted the offer made by the petitioner and assessed the entire turnover work of contract at 8.4 per cent which is 70 per cent of the rate provided for the work in the Fourth Schedule, i.e., 12 per cent. While making the assessment, the assessing officer turned down the claim of the petitioner f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ioner in this case is mainly setting up of substation which includes even civil work. Section 22(1) of the KGST Act authorises collection of tax by registered dealers from the purchasers. In other words, concessional rate is an incentive given to purchasers and, in this case, it is worthwhile to note that in order to avail of concessional rate for purchase, by the KSEB under the notification above referred, they are bound to issue declarations of purchases, in terms of the notification. It is clear from the contract that the KSEB did not want any concessional rate of tax and the contract is loaded with full tax which is evident from para 3 of clause 12 on prices which is as follows: KGST on works contract will be recovered from the bill ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... goods constitute the work. What is clear from the provision contained in the contract is that the parties have agreed that the work executed is a works contract mentioned in the KGST Act and the contract is loaded with tax component in full and it is for the contractor to pay the actual tax for the works contract. In other words, the purchaser for whose benefit concessional rate is provided under notification has not claimed the concessional rate. The beneficiary has not claimed because the contract does not provide payment of tax at concessional rate which means that full rate of tax is loaded in contract amount. We therefore hold that the petitioner's claim is neither bona fide nor tenable. Consequently, we uphold the order of the Tri ..... X X X X Extracts X X X X X X X X Extracts X X X X
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