Case of Intra-State Works Contract

2015-VIL-495-KER
STATE OF KERALA Vs F I DESIGN & DEVELOPMENT PVT LTD
Kerala Value Added Tax Act – Work Contract – evidence to prove Intra-State Work Contract – Whether the assessee who brought the material to the State of Kerala from outside the State as part of business is liable for registration under Section 15(2)(iv) of the KVAT Act – Whether the appellant, a person engaged in contract is liable to take registration irrespective of its tax liability/turnover as per the Section 15(2)(xi) of KVAT Act
HELD
– The materials available on record clearly indicates that the appellant/dealer has purchased goods from Karnataka and the same was brought to Kerala for the purpose of works contract – it is a case where the tax had been payable under the CST Act and once the dealer has suffered the liability to pay tax under the CST Act, there is no difficulty in coming to the conclusion that the Kerala VAT Act has no application
– Revenue contention that the dealer ought to have registered under the Act is also without any basis as the dealer has taken a works contract, which apparently does not indicate that the dealer is required to be registered under the Kerala VAT Act as he is not carrying on any business within the State of Kerala. The works contract is different from “carrying on business” as available under Section 15 of the Act – Revenue Review Petition is dismissed