LARSEN AND TOUBRO LIMITED Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) REVISION petition under Section 23(1) of the Karnataka Sales Tax Act, 1957 (hereinafter referred to as the Act, for short) by a dealer registered under the provisions of this Act and directed against the order passed by the Karnataka Appellate Tribunal, Bangalore order dated 30-6-2005 in STANos.1263 and 1264/2001.

(2.) UNDER the impugned orders which had come to be passed by the Tribunal in exercise of its powers under Section 22 of the Act wherein the assessee's appeal against the suo motu revisional order dated 10-9-2001 passed by the Joint Commissioner of Commercial taxes in exercise of its power under Section 21(4) of the Act had come to be allowed in appeal in the sense that while the Tribunal had granted some relief to the appellant dealer in respect of the subject matter of appeal and in respect of the other part of the appeal which had not been allowed by the Tribunal as against the order of the Joint Commissioner, the present revision petition.

(3.) THE brief facts leading to the above petitions are that the petitioner-assessee/dealer is a construction company registered under the Companies Act. THE petitioner in the course of its business activities undertakes various civil construction works at a competitive price quoted by it for the execution of the entire work which in the Sales Tax parlance is termed as a works contract and the consequence in so far as the Act is concerned, is when the dealer like petitioner executes a works contract, the value of the taxable goods involved in the execution of the works contract attracts tax liability under the provisions of the Act and the machinery for determination of the tax liability is set in motion and quantified, and the dealer called upon to pay the corresponding tax.