IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR & THE HONOURABLE MR. JUSTICE V.K.MOHANAN WEDNESDAY, THE 30TH SEPTEMBER 2009 / 8TH ASWINA 1931 ST.Rev..No. 152 of 2009() ------------------------- TA.240/2008 of S.T.A.TRIBUNAL,ADDL.BENCH,KZD. .................... PETITIONER/APPELLANT/APPELLANT/ASSESSEE ----------------------------------------------------------- T.T.BALAN, KARIPPAKULANGARA HOUSE, KOTTOOLI, KOZHIKODE. BY ADV. SRI.V.V.ASOKAN SRI.MAHESH V.MENON RESPONDENT(S): RESPONDENT/RESPONDENT/REVENUE -------------------------------------------- STATE OF KERALA, REP.BY JOINT COMMISSIONER(LAW), COMMERCIAL TAXES, ERNAKULAM. BY G.P. SRI. MOHAMMED RAFFIQ THIS SALES TAX REVISION HAVING COME UP FOR ADMISSION ON 30/09/2009, THE COURT ON THE SAME DAY PASSED THE FOLLOWING: C .N. RAMACHANDRAN NAIR & V.K. MOHANAN, JJ. -------------------------------------------- S. T. Rev. No. 152 OF 2009 -------------------------------------------- Dated this the 30th day of September, 2009 O R D E R Ramachandran Nair, J. Heard standing counsel appearing for the revision petitioner and the Government Pleader for the respondent. The question raised is whether the assessee is entitled to claim the benefit of compounding rate of 2% under Section 7(7) for the work executed by him for Kerala Water Authority. The tender produced in court shows various items of work which include excavation of earth, laying of pipe, joining of pipes with rubber, metal etc. This Court in the decision reported in S. PHILIPOSE V. STATE OF KERALA, 126 STC 217 = (2002) 10 KTR 150 (Ker.) held that the work done by a contractor in the form of laying of pipes supplied by Kerala Water Authority is essentially a civil work as the pipes and other materials are supplied by Kerala Water Authority. Here also the case of the petitioner is that petitioner has done only earth work, filling , cementing, etc with the pipes supplied by the Kerala Water Authority. Besides this petitioner has constructed 2 a water tank for the Kerala Water Authority, which is also a civil work under the amended provisions. Since none of the authorities, including the Tribunal, has considered the decision of this Court while deciding the matter, we set aside the order of the Tribunal and that of the first appellate authority and remand the matter to the assessing officer to go through the contract, bills raised and approved by the Water Authority, payments made including reimbursement of sales tax made by KWA and make fresh assessment by considering the judgment above referred also. If there is any excess collection of tax, the same will be forfeited under Section 46A(1) of the Act. The assessing officer will call for details from the Kerala Water Authority, which will be supplied by such authority on request by the assessing officer. Petitioner will produce a copy of this judgment before the assessing officer for revision of assessment as directed above. Revision is disposed of as above. (C.N.RAMACHANDRAN NAIR) Judge. kk (V.K. MOHANAN) Judge. 3