2009 (7) TMI 1168

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.... by C.N. RAMACHANDRAN NAIR J.-The question referred by the Division Bench for our decision is whether the petitioners are entitled to payment of tax at the compounded rate under section 7(7) of the Kerala General Sales Tax Act, 1963 on the construction of culverts in the case of two petitioners (S.T. Rev. Nos. 244 and 360 of 2006) and boat jetty in the case of the other petitioner (S.T. Rev. No....

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....uildings, bridges, roads, etc., and culvert was not specifically covered in the provision. However, section 7(7) was amended by the Finance Act, 2004 introducing an Explanation to it. The section as amended is extracted hereunder with the Explanation: "7. (7) Notwithstanding anything contained in sub-section (1) of section 5, every contractor in civil works may, at his option, instead of paying....

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....y other improvement on an existing structure." The question to be considered is whether construction of culvert and construction of boat jetty are works of civil nature entitling the contractors for payment of tax at the compounded rate under section 7(7) of the KGST Act. So far as boat jetty is concerned, Division Bench of this court in State of Kerala v. Radhesyam Khandenwall [2010] 28 VST 34....

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....arificatory and so much so, culvert should be taken to have been covered by section 7(7) even prior to the introduction of the Explanation. Besides this, as observed by the Division Bench in the reference order, we are of the view that there is hardly any difference between a bridge and a culvert and the difference is only in dimension and size. A culvert is nothing but a mini or a small bridge ov....