MOIDOO Vs. STATE OF KERALA

JUDGEMENT

(1.) In these connected cases, the validity of certain provisions of the Kerala General Sales Tax Act, 1963 (for short 'the Act') and the particular Rule framed under the Act has been challenged by different persons who have undertaken contract work in different areas. As per the impugned provisions sales tax has been levied on the sale of goods involved in what is called "works contract", S.2(viii), S.2(xxi) read with Explanation.3(A), S.2(xxvii) read with Explanation.1(A), S.2 (xxvi), S.2(xxv) and S.5(1)(iii) of the Act and R.8(4) of the Kerala General Sales Tax Rules (for short 'the Rules') are the provisions principally assailed herein. When these cases came up before a Division Bench on reference, it was felt that the issues involved are of far-reaching importance and of substantial revenue and hence, the Division Bench referred these batch of cases to a Full Bench. It was thus that the cases have reached us.

(2.) The impugned provisions as such were brought into the Act by means of amendments carried out from 1-4-1984 to 1-7-1987. We make it clear that the challenge is confined to these provisions which remained on the statute book as on 1-7-1987. We state this because some further amendments to the same and other provisions have been brought out subsequently through Acts 23/91 and 8/92 etc. Such amendments have also been challenged in other original petitions, and we are told that a learned single Judge (Mr. Justice T.L. Viswanatha Iyer) has disposed of such original petitions. We make it again clear that this Full Bench is not concerned with such amendments made after 1-7-1987. As on the said date, the impugned provisions remained as follows:

(3.) A short reference to the history of the said amendments will be of advantage. After the Supreme Court delivered judgment in Bengal Immunity Company Limited case (in 1955 (6) STC 446 ) Entry 92-A was added in List I of the 7th Schedule of the Constitution which reads thus: