STATE OF KERALA Vs. BUILDERS ASSOCIATION OF INDIA

JUDGEMENT

(1.) Leave granted.

(2.) Section 5 of the Kerala General Sales Tax Act levies tax on sale or purchase of goods. Clause (iv) of sub-section (1) of Section 5 provides for levy of tax on transfer of goods involved in the execution of the works contract. Sub-clause (a) of Clause (iv) deals with a situation where "transfer is in the form of goods". In such a case, the rates and the point of levy are specified in the First, Second or Fifth Schedule to the Act, Sub-clause (b) deals with a situation where the "transfer of goods involved in the execution of works contract. . . . . . . . .is not in the form of goods but in some other form". In such a case, the rate is specified in the Fourth Schedule to the Act, There are two provisos to Clause (iv) which we need not refer to for the purpose of this case. Section 7 provides for payment of tax of compounded rates. We are concerned herein with sub-sections (7), (7A), (7B), (11) and (12) which were inserted along with certain other provisions by Act 23 of 1991 and Act 8 of 1992. Sub-section (7) provides:

(3.) Sub-section (7A) provides for a similar option to pay at a uniform specified rate in case of contractors not covered by sub-section (7). Sub-section (7A) reads: