Home Case Index All Cases VAT and Sales Tax VAT and Sales Tax + HC VAT and Sales Tax - 2009 (9) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2009 (9) TMI 910 - KERALA HIGH COURTWhether the Tribunal was justified in holding that the work executed by the respondent, viz., supplying and applying hot white thermoplastic road marking paint, marking of pedestrian crossing, zebra crossing, etc., with white and yellow paints on road, constitutes civil works within the meaning of section 7(7) of the Kerala General Sales Tax Act, 1963, entitling the respondent for payment of tax at compounded rate at two per cent? Held that:- Even though the contention of counsel for the respondent agreed that paint marking on the highway is a requirement for opening the highway for traffic under the instruction issued by the Ministry of Surface Transport, such marking does not constitute part of the construction of the road. In the first place, marking is done after completion of the construction of the road and it is awarded under separate contract. In fact, the existing roads are also marked with paints and it is invariably done when the road is declared as national highway or State highway. Therefore, paint marking is essentially a regulation introduced for smooth and safe vehicular traffic and it is not a part of road as a structure. In fact, ever so many roads are constructed and maintained in the State without any paint marking, whatsoever. It cannot be said that such roads are maintained without completion of the construction. In our view, marking of the road is not part of the construction of the road and it is a post construction work done for safe vehicular movement and the purpose is to guide the drivers and pedestrians using the road. Revision allowed.
|