Case Law Details
Gaiagen Technologies Private Limited Vs State of Kerala Represented By The Secretary (Kerala High Court)
Kerala High Court modifies VAT Tribunal’s decision in Gaiagen Technologies case. Ruling clarifies service and works contract, directs fresh assessment. Read more.
Background of the Case: The petition challenges the orders related to the Kerala Value Added Tax Appellate Tribunal’s decision to modify directions of the First Appellate Authority and order a fresh assessment by the Assessing Authority based on the nature of the contracts entered into by Gaiagen Technologies.
Nature of Contracts: The petitioner argues that the business of pest control it undertakes falls under the category of a service contract and not a works contract. The contention is that the imposition of VAT on transactions that are purely service-oriented is erroneous.
Service Tax and VAT Distinction: The petitioner asserts that service tax and VAT are mutually exclusive, citing various legal precedents. The argument is that if a transaction is subjected to service tax, then no VAT can be levied on the same element of the same transaction.
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