2009 (9) TMI 910

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....e meaning of section 7(7) of the Kerala General Sales Tax Act, 1963 (for short, "the KGST Act"), entitling the respondent for payment of tax at compounded rate at two per cent. We have heard learned Government Pleader appearing for the petitioner and Sri Ramadas, appearing for the respondent. The work involved is awarded to the respondent by the Kerala Public Works Department for marking of national highway with hot white and yellow thermoplastic road marking paint. Under the work schedule, payment is for every square feet of painting work done on road in terms of the instructions of the PWD. Admittedly, paint marking on road is through the middle and at pedestrian crossings with zebra marking and also arrow indications on the road. Whil....

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....sonry work or any other work of the like nature as may be notified by Government in this behalf, from time to time, but shall not include any improvement or upgradation of such civil work by means of fixing or laying of all kinds of floor tiles, mosaic tiles, slabs, stones, marbles, glazed tiles, painting, polishing, partitioning, wall panelling, interior decoration, false sealing, carpeting, electrification, air conditioning or any other improvement on an existing structure." It is clear from the above provision that payment of tax at compounded rate at two per cent is provided only if the work awarded is a civil work. Under the Explanation in the above definition clause, civil work includes not only construction, but repair or maintena....

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....h alone will entitle the respondent for concessional rate of tax under the scheme of compounding provided under section 7(7) of the KGST Act, because the work done is not in the nature of repair or maintenance of the road. The Government Pleader submits that construction of the road is complete in all respects prior to the road marking work done by the respondent with the application of special type of paints under a separate contract. Counsel for the respondent, on the other hand, contended that without marking with paint, the construction in the national highway will not be complete and only after making the markings on the highway, it is open for traffic. Even though we agree with the contention of counsel for the respondent that paint m....