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2016 (12) TMI 68 - KARNATAKA HIGH COURTWorks contract - commodities of bitumen and jelly - duty chargeable at 4% or 12.5% - Held that: - the Tribunal in the impugned order has considered that the amendment has come into effect from 1st of April 2006. Therefore, for the respective period of 2005 -2006, the amendment did not exist on the statute book. Resonantly, the duty as was prevailing prior to 1.4.2006 for the respective items will be considered for the chargeability. The Tribunal has recorded that for the jelly as well as bitumen which are the material being used, 4% is the duty provided as per the III Schedule vide item No.83 and 11/15 respectively and accordingly, the duty to the extent of 4% is maintained. When the amendment was not on the statute book for specifically providing duty/Tax on works contract, it cannot be said that duty chargeable would fall in the category of residuary item at the rate of 12.5%. The view taken by the Tribunal is that, whatever the items are utilized in execution of the works contract will have to be considered separately for the purpose of chargeability. Of course, the benefit is already gr anted for the Iron and Steel by the First Appellate Authority to the extent of 32.5% of the total amount of the purchase. For the cement, the Tribunal had found that it would be 12.5%, whereas, for jelly, it would be 4% and for bitumen, it would be 4%. The view taken by the Tribunal, more particularly, in the absence of any amendment in the statute book providing for separate chargeability of the works contract cannot be said to be erroneous. Petition dismissed.
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