IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE V.GIRI WEDNESDAY, THE 19TH NOVEMBER 2008 / 28TH KARTHIKA 1930 WP(C).No. 29140 of 2008(R) -------------------------- PETITIONER(S): --------------- K.SUBRAMANIAN, CONTRACTOR, MYTHRI, PUTHUVILL VEEDU, MYLAKKAD P.O., KOLLAM DISTRICT PIN 691 571. BY ADV. SRI.M.P.RAMNATH RESPONDENT(S): --------------- 1. THE KERALA STATE ELECTRICITY BOARD, VYDHYUTHI BHAVANAM, PATTOM,THIRUVANANTHAPURAM, REPRESENTED BY SECRETARY. 2. THE DEPUTY CHIEF ENGINEER, TRASMISSION CIRCLE, KSEB, VYDHYUTHI BHAVANAM, KOTTARAKKARA. ADV. SRI.P.P.THAJUDEEN, SC, K.S.E.B FOR R1-2 THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 19/11/2008, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: V.GIRI, J ------------------- W.P.(C).29140/2008 -------------------- Dated this the 19th day of November, 2008 JUDGMENT Petitioner is a contractor in the Electricity Board. His grievance is that the Board has been retaining the amount by way of Value Added Tax even on the materials supplied by the Board to the petitioner. 2. A statement has been filed by the learned Standing Counsel for the Board and paragraph 2 of the same reads as follows:- “It is submitted that the Contractor is liable to pay VAT for the items used for executing work other than departmental supply. As per the terms of contract, K.S.E.Board has supplied cement and forsteel for executing the work. Other materials required for executing the work such as metal, sand etc, has to be purchased by the contractor. VAT for the same has to be paid by the contractor himself and has to W.P.(C0.29140/2008 2 produce the tax clearance certificate. Moreover, the Contractor is liable to pay VAT for items used for executing work other than departmental supply”. 3. Petitioner has filed a reply affidavit and paragraph 9 of the same reads as follows:- “The only clarification and order that is required in this writ petition is that the petitioner contractor is not liable to pay VAT or the department is not entitled to recover VAT upon materials purchased and supplied by the Department for its own work. All other issues in respect of amount of VAT to be paid upon materials purchased by the petitioner shall be cleared and settled by the petitioner before the sales tax authorities.” 4. The contention of the petitioner that he is not liable to pay VAT nor the Department is entitled to recover the same, on the materials supplied by the Department to the petitioner as a contractor for the work executed by W.P.(C0.29140/2008 3 him is justified. The Board shall not either recover or retain any amount, otherwise due to the petitioner towards VAT, on the materials supplied by the Board to the petitioner in the course of the work executed by him. Other contentions of the petitioner are not germane for consideration at this stage. Subject to the above clarification, writ petition is disposed of. V.GIRI, Judge mrcs