2006 (9) TMI 524

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....rk undertaken by the assessee would fall under the residuary entry 22 of the Fourth Schedule to the Kerala General Sales Tax Act, 1963. Consequently, the rate of tax that is applicable for the year 1990-91 is five per cent and for the year 1996-97 is six per cent. Assessing officer took the view that entry 22 of the Fourth Schedule is not applicable to tyre retreading works, but exigible to tax under entry 112 of the First Schedule (now 123) since transfer of goods is involved in the execution of works contract and for the materials transferred, that is, tread rubber, the rate of tax to be levied is 10 per cent. According to the assessing authority works contract would fall under "works contract where the transfer is in the form of goods" a....

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....volved in the contract is in some other form. The Special Government Pleader (Taxes) appearing for the Revenue, on the other hand, tried to support the findings of the authorities below including that of the Tribunal and submitted that the assessing authority was justified in imposing tax under section 5C of the KGST Act holding that the work undertaken by the assessee is works contract where the transfer is in the form of goods and hence the contract comes under the first category and as such the rate of tax is that applicable under the First Schedule on the materials transferred. We find it difficult to sustain the orders passed by the authorities below including that of the Tribunal. We are of the view that the authorities below ha....