2009 (3) TMI 943

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....cial Taxes under section 94 of the Act. The appellant is an association whose members are engaged in fabrication, supply and installation of rolling shutters. The appellant claimed that work involved, namely, fabrication and installation of rolling shutters for customers is works contract which entitles them for payment of tax at compounded rate under section 8(a)(i) of the KVAT Act. The Commissioner, however, vide annexure V order clarified that fabrication and installation of rolling shutters is taxable under section 6(1)(e) read with section 6(1)(d) of the Act at the rate of 12.5 per cent. It is against this order appeal is filed by the appellant. We have heard counsel for the appellant and the Government Pleader appearing for the respon....

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....provided in this Act. The liability to pay tax shall be on the taxable turnover,- (a) in the case of goods specified in the Second and Third Schedules at the rates specified therein and at all points of sale of such goods within the State and in the case of aerated branded soft drinks excluding soda at the rate of twenty per cent at all points of sale within the State. . . . (d) in the case of goods not falling under clauses (a) or (c) at the rate of 12.5 per cent at all points of sale of such goods within the State. Government may notify a list of goods taxable at the rate of 12.5 per cent. (e) in the case of transfer of goods involved in the execution of works contract where transfer is in the form of goods, at the rates speci....

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....rks contracts awarded by Government of Kerala, Kerala Water Authority or Local Authorities shall be four per cent of the whole contract amount: Provided further that the provisions of this clause shall not apply to any works contract in which the transfer of material is in the form of goods: . . ." Counsel for the appellant rightly pointed out that section 8 is by way of an exception to section 6 and therefore, they are entitled to payment of tax at compounded rate. However, we find that second proviso to section 8(a)(ii) makes an exception to the compounding provisions with regard to works contract involving transfer of materials in the form of goods. The effect of the second proviso is that section 8(a) providing for compounding ....