TMI Blog1992 (2) TMI 357X X X X Extracts X X X X X X X X Extracts X X X X ..... in these revisions is about the interpretation placed by the Tribunal on S.R.O. No. 968/80-G.O. Ms. No. 74/ 80/TD dated September 29, 1980. The question is whether the assessee, who is the owner of a small-scale industry, is entitled to the tax exemption as provided in the above Government notification. The Tribunal negatived the plea of the assessee and held that the assessee's unit is not eligible for exemption as envisaged in the Government Notification, S.R.O. No. 968/80. The question is, whether the said interpretation, placed by the Tribunal, on S.R.O. No. 968/80, is justified in law. 3.. We heard counsel for the assessee (revision-petitioner) Mr. O. Ramachandran Nambiar, and counsel for the respondent (Revenue), Senior Government P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessing officer was confirmed. The State took up the above matter by filing two appeals before the Tribunal as T.A. Nos. 96 and 442 of 1988. The assessee filed cross objections in the said appeals as C.O. Nos. 23 and 56 of 1988. The assessee filed another appeal, T.A. No. 90 of 1988 for additional reliefs. We are not concerned with the said appeal herein. 5.. Counsel for the assessee Mr. Nambiar stressed the plea that after explanation (3A) to section 2(xxi) of the Kerala General Sales Tax Act (in short, "the Act"), a transfer of property in goods (whether as goods or in some other form) involved in the execution of a works contract shall be deemed to be a sale and on this basis, since the State is enabled to levy sales tax on the pric ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .............. (b) a tax on the transfer of property in goods (whether as goods or in some other form) involved in the execution of a works contract;" Section 2(xxi)(3A) of the Kerala General Sales Tax Act: ....................... "2. Definitions.-In this Act, unless the context otherwise requires: (xxi) 'sale' with all its grammatical variations and cognate expressions means every transfer whether in pursuance of a contract or not of the property in goods by one person to another in the course of trade or business for cash or for deferred payment or other valuable consideration, but does not include a mortgage, hypothecation, charge or pledge: Explanation:........... (3A) A transfer of property in goods (whether as goods or i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e fixed capital investments, second hand machinery and equipments procured from within the State of Kerala shall not be considered for sales tax concession. This notification shall be deemed to have come into force with effect from 1st April, 1979." 7. The Tribunal, relying on the decision of the Supreme Court in Builders Association of India v. Union of India [1989] 73 STC 370 held that retreading activity is a specie of works contract and it is possible for the State to levy sales tax on the price of goods and materials used in works contract as if there was a sale of such goods and materials. It was further held that tax shall be levied only on the price of goods and materials used in the retreading activity. The taxable turnover w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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