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2018 (8) TMI 1 - HC - VAT and Sales TaxLevy of VAT - Intra-state or inter-state levy? - works contract - turnkey project - registration of outside contractor - Whether the dealer who is engaged in installation and commissioning of water and sewage treatment plant, is liable to pay tax within the State, for the goods incorporated in the works contract when the said goods are transported inter-state pursuant to the contract entered into by the awardee situated within the State of Kerala? Held that:- When there is an inter-state sale there would be no tax leviable in the recipient State. Like wise when there is an inter-state works contract the sale occurs only when there is an incorporation in the works. If the transfer of goods, which are incorporated in the works, are those brought from the other State, it has all the characteristics of an inter-state sale - decided in favor of in favor of the out-of- state contractor. Whether the outside contractor who had carried out the inter-state works contract, in his status as an importer has obtained registration or not? - Held that:- The necessity to get a registration cannot be disputed. In such circumstances, there is a reason for penalty but however, there being no tax evasion, the consequence would be the imposability to compute the tax evaded, and in that context the maximum penalty of ₹ 10,000/- would be imposed on the dealer, in all the three years - There shall be a levy of penalty of ₹ 10,000/- in each of the years on the dealer-petitioner in the revision under the KGST Act and the respondent in the revisions under the KVAT Act. Revision allowed in part.
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