Case Law Details
State of Kerala Vs Metro Minerals India (P) Ltd. (Kerala High Court)
The transfer of property in goods whether as goods or in some other form involved in the execution of a works contract shall be deemed to have taken place in the State, if the goods are within the State at the time of such transfer, irrespective of the place where the agreement of works contract is made, whether the assent of the other party to the contract is prior or subsequent to such transfer.
FULL TEXT OF THE HIGH COURT ORDER /JUDGEMENT
The question of law arising in the above appeal is as to whether the transaction carried out by the respondent-assessee, pursuant to a contract entered into with M/s. KMC Construction Ltd., is an interstate sale or an interstate works contract, thus not exigible to tax within the State.
2. The respondent-assessee entered into a contract with one M/s.KMC Construction Ltd. for delivery and erection of a 3 stage-Nordwheeler Plant. The entire materials for the plant were sourced from Singapore and Calcutta, which were brought into the State in a knocked-down condition and erected at the site of M/s. KMC Construction Ltd. The Intelligence Officer found that the same is a works contract and the transfer of goods having occurred at the time of the accretion of the goods in the works, is a works contract. Such transfer having occurred within the State on accretion of the goods in the works it was found to be taxable within the State of Kerala. The First Appellate Authority rejected the appeal filed by the assessee. The Tribunal reversed the orders of the lower Authority, finding the same to be an interstate works contract.
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