In spite of the enunciation of law in ACC, Entry 25 has not stood revived or restored into the Sixth Schedule of the Act. Therefore the Authorities under the Act cannot levy tax under the Act in regard to transfer of property in goods involved in processing photo negatives and supplying of photo prints and photographs, as if Entry 25 has stood restored in the Sixth Schedule to the Act.
Karnataka High Court
Golden Colour Labs and Studio and others
Vs.
The Commissioner of Commercial Taxes
Dated- 30 July, 2003
Equivalent citations: ILR 2003 KAR 4883, 2003 134 STC 570 Kar
Author: Raveendran
Bench: R Raveendran, K Manjunath
ORDER
Raveendran, J.
1. Petitioners are all assesses under the Karnataka Sales Tax Act, 1957 (for short, the Act). They are in the business of developing photographic films brought by the customers, making positive prints thereof and supplying positive prints to the customers. Some of them also undertake the works of taking photographs, enlarging prints, etc.
2. Section 5B was inserted in the Act by Act 27 of 1995 with effect from 1.4.1986. It enables the State to levy tax on transfer of property in goods (whether as goods or in some other form), involved in the execution of work contract. The said Section is extracted below:
5-B Levy of tax on transfer of property in goods (whether a goods or In some other form) involved in the execution of works contracts – Notwithstanding anything contained in Sub-section (1) or Sub-section (3) or Sub-section (3-C) of Section 5, but subject to Sub-section (4), (5) or (6) of the said section, every dealer shall pay for each year, a tax under this Act on his taxable turnover of transfer of property in goods (whether as goods or in some other form) involved in the execution of works contract mentioned in column (2) of the Sixth Schedule at the rates specified in the corresponding entries in column (3) of the said Schedule.
3. The term ‘works contract’ is defined in Section 2(1)(v-l) as including any agreement for carrying out for cash, deferred payment or other valuable consideration, the building, construction, manufacture, processing, fabrication, erection, installation, fitting out, improvement, modification, repair or commissioning of any movable or immovable property.
4. Sixth Schedule enumerates the description of works contracts involving transfer of property in goods in regard to which tax is payable under Section 5B. Entry 25 of Sixth Schedule, with which we are concerned is extracted below :
