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of <h1>Court rules photo block contracts as works contracts, not subject to sales tax. Estoppel plea rejected. Favorable decision for assessee.</h1> The Court dismissed the tax revision case, affirming that the contracts for photo blocks were works contracts, not subject to sales tax under the Kerala ... - Issues Involved: Determination of whether a contract for the preparation of photo blocks constitutes a works contract or involves the sale of materials under the Kerala General Sales Tax Act for the assessment year 1976-77.Summary:The case involved a dispute regarding the taxability of the turnover of photo blocks supplied by the assessee, claiming they were not liable to be assessed under the Kerala General Sales Tax Act due to being works contracts rather than sales of materials. The Appellate Tribunal, relying on a Supreme Court decision, held that the contracts were indeed works contracts and granted the exemption claimed.Questions of Law Raised:1. Whether the transactions of making and supplying photo blocks constitute works contracts without any sale involved.2. Whether the Tribunal's decision aligns with the Supreme Court precedent.3. Whether the Tribunal's decision is distinguishable based on facts.4. Whether the Tribunal's decision contradicts a previous decision of the High Court.5. Whether the assessee can dispute taxability even after conceding the turnover.6. Whether an assessee can claim tax exemption after collecting tax on a transaction.Court's Analysis:The Court considered the nature of the contract for preparing photo blocks, emphasizing the skill and labor involved in the process. It was noted that the degree of skill and labor in block-making exceeded that of a photographer, indicating a works contract rather than a simple sale of materials. The Court agreed with a similar decision by the Madhya Pradesh High Court, supporting the view that the occupation of a block-maker primarily involves skill and labor.Conclusion:The Court dismissed the tax revision case, affirming that the contracts for photo blocks were indeed works contracts, not subject to sales tax under the Kerala General Sales Tax Act. The plea of estoppel was rejected, emphasizing that fiscal law does not entertain equity considerations. The decision was made in favor of the assessee, and the petition was dismissed without costs.
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