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2009 (6) TMI 946 - KERALA HIGH COURTWorks contract - inter-state sale - The petitioners claimed exemption on the ground that movement of goods from outside the State to Kerala is under contract of sale and so much so it is an inter-State sale assessable outside Kerala - Held that: - transfer of property in goods admittedly took place in Kerala when the goods are appropriated to the contract that is by laying pipe in the location identified by the awarder. Until then the goods were retained by the petitioner at their risk in their godown. A trader making inter-State purchase or bringing goods on stock transfer and selling the same later becomes liable for payment of tax under the Kerala General Sales Tax Act on sale of such goods. The position is not different so far as contractors are concerned, who bring goods from outside the State either as stock transfer or as inter-State purchase, stock them in their godown and later use them in the execution of works contract - the Tribunal rightly held that the transfer of materials in the course of execution of work in Kerala does not amount to inter-State sale of goods from Mumbai to Kerala - petition dismissed - decided against petitioner.
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