2013 (10) TMI 486

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....stions of law :- "1. Whether in the facts and circumstances of the case, the Tribunal has failed to consider that in dyeing works contract, the goods to be incorporated may either be as goods or in some other form similar to the accretion or occasions due to the application of dyes and chemicals ? 2. Whether the Tribunal has failed to distinguish dyes and chemicals from that of consumables like fuel or welding electrodes, which are exhausted or disappeared after the work executed ?" 2. Since all the Tax Cases (Revision) are related to the very same assessee and the common questions of law arise, it is suffice to refer the general facts as are available. 3. The assessee herein is carrying on business in bleaching and dyeing of fa....

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....on 3-B of the Tamil Nadu General Sales Tax Act, 1959 (hereinafter called as the "Act) which are found in parenthesis in Article 366(29-A) and pointed out that the object of amendment in Article 366 (29-A) of the Constitution was to bring to tax the items, which otherwise could not have been brought to tax, and it was not meant to be a sieve through which goods liable to be taxed are allowed to escape tax. This Court further pointed out in paragraph 13 as under:- "13. The change in the form referred to in article 366(29-A) of the Constitution is not change in the form of the goods to other commercially distinct and taxable goods. The change of form referred to therein, is the change of goods into another form which by itself would not hav....

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....onable. Thus, there was sale of chemical involved in the execution of works contract. On this, the Full Bench of Kerala High Court upheld the decision of the Assessing Officer and held that the assessee was liable to be assessed under the provisions of the Sales Tax Act. The Kerala High Court however, held that even after insertion of Article 366 (29A), under the 46th Amendment to the Constitution, there cannot be any sales tax on a works contract per se; there must be transfer of property in goods, as goods or in any other form. 7. We are in respectful agreement with the decision of the Full Bench of the Kerala High Court. Applying this decision and read in the context of the decision of this Court reported in (2003) 129 STC 167 in the ....