TaxTMI 
TaxTMI 
2012 (9) TMI 899
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....purchase of necessary building materials, hardware, the goods falling under III Schedule, the declared goods under section 15 of the Central Sales Tax Act and other non-scheduled goods within and outside the State as well as from the unregistered dealers. 2. The appellant made an application under section 60 of the KVAT Act before the Authority for Clarifications and Advance Rulings ("the ACAR", for short) seeking for clarification in respect of: (a) Applicability of the rate of tax on execution of civil works contract under the Act; and (b) Whether input-tax credit can be availed of out of output tax paid by the contractor. 3. The ACAR after examining the matter in detail, by its order dated August 2, 2006 came to the conclusio....
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....The Commissioner for Commercial Taxes after considering the objections filed by the appellant by its order dated October 12, 2010 set aside the order passed by the ACAR in exercise of its suo motu revisional power and held that the goods used in the works contract cannot be treated on par with the normal sale of goods for the purpose of arriving at the rate for the period prior to April 1, 2006. Further, the iron and steel or any other declared goods used for executing the works contract would be liable to be taxed as per the State law. The appellant, being aggrieved by the order dated October 12, 2010 passed by the Commissioner for Commercial Taxes has preferred this appeal. 5. Sri B.G. Chidananda Urs, the advocate appearing for the app....
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....w material and incorporated into civil works or other works contract in the same form, except that the same was fashioned to suit the requirement, before the same was merged into the works did not lose their nature or form and therefore could not be subjected to tax as the goods have already suffered tax as declared goods under the Central Sales Tax Act and sought for setting aside the same. 6. On the other hand, Smt.S. Sujatha, learned Additional Government Advocate argued in support of the order passed by the Revisional Authority and contended that the finding of the ACAR is contrary to law and prejudicial to the interest of the revenue. She further contended that as per the definition of 'goods', it includes all materials, commodities....
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....at the rate of tax for the period prior to 1-4-2006? 8. Section 3(1) of the Act provides for levy of tax on every sale of goods in the State by a registered dealer or a dealer liable to be registered,in accordance with the provisions of the Act. Section 4 of the Act deals with the rate of tax on every sale of the goods, which reads as under: 4. Liability to tax and rates thereof 1) Every dealer who is or is required to be registered as specified in Sections 22 and 24, shall be liable to pay tax, on his taxable turnover, a) in respect of goods mentioned in.- i) Second Schedule, at the rate of one per cent, &....
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....-2006 clarified the same. Subsequently, on further clarification sought for by the appellant, the ACAR by its order dated 07-12-2006 further clarified that if the iron and steel is used in the same form in the course of execution of the works contract, it is liable to tax at 4% as per Section 4(1)(c) of the Act. However, the Commissioner feels that clarification made by the ACAR is prejudicial to the interest of the revenue, insofar as clarification regarding the rate of tax on works contract prior to 31-3-2006. Accordingly issued notice and reviewed the order passed by the ACAR. 10. Section 3(1) of the Act provides for levy of tax on every sale of goods. Section 4 prescribes the rate of tax. Neither Section 3 nor Section 4 of the Act se....