2018 (3) TMI 1367

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....it involves both material and labour and not sale simpliciter which would involve only material/goods alone and no labour. Petitioner was an assessee under the Karnataka Sales Tax regime also. Pursuant to Karnataka Value Added Tax Act, 2003 ['Act', for short] coming into force, petitioner filed an application under Section 59[4] seeking clarification in as much as rate of tax applicable on printing and supply of flex, vinyl, signboards and installation. The Respondent No.1-Commissioner of Commercial Taxes issued clarification dated 11.10.2017, clarifying that printing and supply of Flex, Vinyl and signboards and installation is a works contract liable to tax at 14.5% from 1.8.2002 to 30.6.2017 under Entry 23 of Sixth Schedule subject to ded....

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....EN OFFSET PRINTERS PVT. LTD., v. THE STATE OF KARNATAKA' In STA No.14/2015 [DD-26.04.2016] submitted that the activity or the contract for flex, vinyl printing and installation effected by the petitioner falls under Sl. No.23 of Sixth Schedule. It is submitted that the posters, vinyl hoardings, printed fabric banners, flex banners, bill boards etc., which are items essentially used for publicity as against private use by any person has to be construed as a contract falling under Sl. No.23 of Sixth Schedule to the Ac t. 5. I have given my anxious consideration to the arguments advanced at the Bar and perused the material on record. 6. It is not in dispute that the activity carried on by the petitioner is a works contract liable to tax unde....

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.... pause of greater importance than that shown by the comma. It is 'sued to separate the clauses of compound sentence. It is also used to separate a series of loosely related clauses, each, however, is independent of the other. The two parts of the proviso separated by a 'semi-colon' are not inter-connected or inter-linked with each other. The 'semi-colon' mark followed by a word 'so' with 'comma' thereafter, appears to have been deliberately used by the Rule making authority with a view to separate the first part from the second part of the proviso." 7. The view of this Court that printing: block making consists of two activities separated by semi - colon mark is independent of the other, these two activities of printing and block making a....

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....edule to the Act as sale simpliciter. The activity being works contract as admitted by the revenue, the same do not fall under Entry 71 of Third Schedule. 9. Considering the entries applicable as aforesaid, the next question would be whether the activity carried on by the Assessee is mere printing or does it include composite contract with one or more categories specified in Sixth Schedule. The contract referred to by the Assessee is flex, vinyl, signboards and installation. The Commissioner of Commercial Taxes ought to have examined whether the installation work carried on by the assessee is a composite contract attracting Sl. No.23 of the Sixth Schedule to the Act. The Commissioner proceeded on the ground that the contract falls under E....