TaxTMI 
TaxTMI 
2009 (10) TMI 873
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.... the respondent and have also gone through th orders and the copy of the contract produced in court. The Kerala State Electricity Board (KSEB) awarded various items of work such as setting up of substations, installation of transmission and distribution lines, etc., in Wayanad District to the petitioner for a total consideration of Rs. 9,39,06,193. The scope of work as stated in the contract produced is briefly stated as below: "The scope covers the design, materials selection, manufacture, supply, engineering, inspection, testing at the manufacturer's work, packing, transportation to and delivery at the site, storage, erection, construction, supervision of construction/erection, installation, pre-commissioning tests and placing in su....
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.... in the course of execution of works contract, and so much so, the tax payable under section 7(7A) read with the above notification is only 70 per cent of four per cent, i.e., 2.8 per cent. The notification specifically states that concessional rate of tax at four per cent is available on the sale of goods to KSEB, National Thermal Power Corporation and other power generating undertakings in the joint sector with capacity above 25 KW for use in the generation and distribution of power. The question to be considered is whether this notification is applicable for sale of goods involved in the execution of works contract. Counsel for the petitioner relied on annexure (g), circular issued by the Commissioner of Commercial Taxes, clarifying the ....
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....ich the contractor is required to pay under the statute. The contractor also has to pay the cess under Building and Other Construction Worker's Welfare Cess Act and Rules, 1996 at the rate of one per cent on the cost of construction, including cost of materials." It is obvious from the above that the KSEB has not treated the work awarded to the petitioner as supply of goods entitling itself for concessional rate of tax. There is nothing to indicate that the KSEB has undertaken to issue any declaration to the petitioner for them to avail of concessional rate of sales tax. Even though at the petitioner's request, they have issued declaration, it is seen that what they have stated is that goods purchased are for works contract. In fac....