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2009 (11) TMI 835 - KERALA HIGH COURTAmendment brought about to section 6(1)(f) of the Kerala Value Added Tax Act, 2003 as amended by the Kerala Finance Act, 2006 (Act 22 of 2006) challenged as for unconstitutional in so far as it imposes levy of tax at 12.5 per cent in the execution of works contract and transfer is not in the form of goods though goods are not separately assessable and for further consequential reliefs Held that:- Section 6(1)(f) as introduced by Act 22 of 2006 is well within the legislative competency of the State and that the retrospective operation given from July 1, 2006 to October 24, 2006 does not impose any unreasonable restriction in the matter of freedom of trade or impose any undue hardship Merely because section 6(1)(f) was introduced without a previous Bill being introduced with the recommendation of the Governor, the infirmity, if any, stands cured once the assent is obtained under article 200 of the Constitution of India in the light of the specific provision contained in article 255 of the Constitution, also that in so far as the rate of tax in respect of declared goods in excess of the rate as provided under section 15 of the Central Sales Tax Act will be unconstitutional, we hold that the ninth proviso added to section 6(1)(f) being clarificatory in nature and in that context it will be effective from the date on which section 6(1)(f) was brought into force and thus save the provision from being ultra vires of the Constitution and consequently we declare the rate of tax applicable to declared goods shall always be at the same rate as provided under the CST Act and that prescription of uniform rate of tax in the transfer of goods and execution of works contract where transfer is not in the form of goods but in some other form at the rate of 12.5 per cent and when the transfer is in the form of goods at the rate prescribed for the respective Schedules, is legal and valid.
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