Works contractor eligibility for CST registration and C forms upheld for inter-State purchases in construction contracts

A works contractor engaged in building construction was treated as entitled to CST registration in Form B with the goods list accepted, because binding precedent recognised such a contractor as a manufacturer for CST purposes. On that basis, the contractor could make inter-State purchases against C forms for execution of the works contract, and the denial of such forms was not sustained. The entitlement remained subject to compliance with the applicable statutory formalities, if any.

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Issues: Whether a works contractor engaged in building construction is entitled to CST registration in Form B with the goods list accepted, and whether such contractor can make inter-State purchases against C forms for execution of the works contract.

Analysis: The Court noted that the petitioner was engaged in works contracts and had sought registration under the Central Sales Tax regime for purchasing goods required for execution of those contracts. The respondents denied the benefit on the footing that a works contractor is not a manufacturer and therefore cannot use C forms, restricting the petitioner to the procedure under the Kerala Value Added Tax Rules. The Court relied on binding precedents holding that a works contractor engaged in construction activities is treated as a manufacturer for the purpose of CST registration and entitlement to C forms, and that a registered dealer under the CST Act cannot be denied such forms.

Conclusion: The petitioner was held entitled to CST registration certificate in Form B including the goods in the application and to make inter-State purchases against C forms for execution of the works contract, subject to compliance with statutory formalities, if any.

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