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2009 (6) TMI 953 - KERALA HIGH COURTNon entitlement to payment of tax at compounded rate in respect of works contract executed in the form of supply and installation of kitchen cabinet Held that:- Clause (ii) applies in respect of every divisible contract and even where specified goods are locally procured such goods will attract tax at scheduled rate as provided under section 6(1)(e) of the Act and the balance portion of work that is fabrication, supply and installation of kitchen cabinets with top, fittings, partitions, etc., by the appellant will be assessed as works contract. In view of the proposed amendment, and in view of the discussion above, we are of the view that there cannot be any absolute bar against payment of tax at compounded rate on the works executed involving fabrication, supply and installation of kitchen cabinets. While the Commissioner's finding that in respect of supply of specified goods tax is payable at the rate provided in the Schedule is correct, we vacate that part of the order where he says that no compounding is permissible in respect of remaining work relating to fabrication, supply and installation of kitchen cabinets. Appeal partly allowed upholding the impugned order of the Commissioner issued under section 94 of the Act and by directing the assessing officer to consider eligibility for compounding depending upon the nature of contract executed in each case and to make assessment accordingly.
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