MYSORE CONSTRUCTION CO Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) WRIT petitioners are all traders who have transactions in the nature of sate of goods. Petitioners are all registered dealers under the provisions of the Karnataka value Added Tax Act, 2003 [for short the act'), within the definition of a 'registered dealer' as it occurs in sub-section (27) of Section 2 of the Act.

(2.) WHILE most of the writ petitioners are all registered dealers who have transactions in the nature of works contract, which is one of executing different types of works in favour of customers in terms of the agreement between the petitioners and their customers and at a price agreed Upon, some are hoteliers and some are stone crushers.

(3.) SIGNIFICANCE of works contract under the karnataka Value Added Tax Act, 2003 is that the value of the goods in execution of such works, which becomes properties of the clients for Whom the dealers are executing the work contract, which is a transaction in the nature of sale in respect of goods, attracts liability for payment of tax under the provisions of the Act as envisaged under Section 3 of the Act Which is the main charging section levying tax on every transaction in the nature of sale of goods and at the rate stipulated in respect of different goods as indicated in Section 4 of the Act, which is the normal scheme of levy and collection of tax under the provisions of this Act. This Act has provided an optional scheme of paying tax to such of those dealers who opt for the optional scheme known as payment of tax by way of composition as envisaged under Section 15 of the Act and by exercising the option. Petitioners have all opted for payment of tax or discharge their tax liability by making payment in terms Of the provisions of Section 15 of the Act.