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2012 (7) TMI 854 - KARNATAKA HIGH COURTWhether uniform levy of tax under section 4(1)(c) does not attract in the instant case as it is divisible contract and that for cable wires supplied in works contract, attracts lesser duty at four per cent. and not uniform rate at 12.5 per cent. is bad in law? Held that:- Section 4(1)(c) of the KVAT Act was incorporated by amendment with effect from April 1, 2006 when the law specifically authorizes the State to levy uniform tax. It may not be within the competence of the taxing authorities to enter into contract to negate the effect of section 4(1)(c) of the KVAT Act. Section 4 is the charging section, which lays down different tax rates for the goods mentioned in Schedules II to IV. In the case of Gannon Dunkerley [1992 (11) TMI 254 - SUPREME COURT OF INDIA] it is categorically held that the State can legislate the law to levy uniform tax. The argument that such levy of uniform tax would be discriminatory and would be in variation with the tax imposed on the particular product if it is not deemed sale under the contract works, is untenable. When the Legislature empowers the taxing authority to levy uniform tax by section 4(1)(c), it is impermissible for the assessee to contend that some of the items supplied in the contract works constitute divisible contract and it should attract less tax is untenable. In that view, the question of law is answered in favour of the petitioner. Revisions allowed.
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