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Contents v [Section 15A of the U.P. Trade Tax Act, 1948] - Vysya Bank Ltd. v. Commissioner of Trade Tax, UP (All.) 257 REGISTRATION - Period 3-8-2000 to 3-9-2000 - Petitioner was a registered dealer dealing in live chicken, hatching chicks, equipments, poultry feeds and poultry medicines, etc. - Dy. Commissioner found that bank instruments furnished by dealer towards advance tax between period from 3-8-2000 to 3-9-2000 worth Rs. 50,000, had been dishonoured for insufficiency of funds in bank account - On basis of said report Commissioner of Commercial Taxes, held that tendering of invalid bank instruments and dishonouring of same when presented for encashment was a ‘good and sufficient reason’ provided under section 16(10), for cancelling registration - It further held that instruments tendered by dealer were accepted by officials of check post, on presumption that, those were ‘Pay orders’ issued by bank, and description of signature in instruments was printed in order to mislead check post authorities that those were ‘Pay orders’, but, in fact those instruments were cheques issued by ‘Farmers Development Society’ in favour of Commercial Tax Inspector; therefore, nature of offence committed by dealer was grave and was liable to be dealt with under provisions of section 16(10), read with rule 17(18)(vii) and, accordingly, he cancelled registration of petitioner - It was found from records that (i) no action as enumerated in rule 28 which provided for specific procedure with respect to dishonour of cheques, was resorted to in instant case, (ii) before taking any action on basis of abovesaid allegations, principles of natural justice demanded that dealers should be put on with specific notices raising such allegations and they should be given adequate opportunity to defend such allegations, however, proposed notices issued in instant case did not reveal any such instances or did not contain any of narrations of fraud committed by petition - Whether in view of above said facts, Commissioner of Commercial Taxes was not justified in cancelling registration of petitioner - Held, yes [Section 16 of the Kerala Value Added Tax Act, 2003, read with rule 17 and rule 28 of the Kerala Value Added Tax Rules, 2005] - Shanthi Poultry Farm (P.) Ltd. v. Commercial Tax Inspector (Ker.) 182 SALE - Assessment year 1993-94 - Whether manufacturing of bus bodies on chassis as per design, specifications and seating capacity supplied by customers, amounted to sale of motor vehicle bodies, and is liable to tax under provisions of Act - Held, yes [Section 68 of Punjab Value Added Tax Act, 2005] - New Model Industries (P.) Ltd. v. State of Punjab (Punj. & Har.) 222 - Assessee, trading company, provided tankers to Indian Oil Corporation - Tribunal found that it was for oil company to use or not to use tankers and assessee was having no control over movement of tankers - Whether since transfer of right of property is not transfer of property, no tax was leviable on assessee - Held, yes [Section 2(h), read with section 3 of the Uttar Pradesh Trade Tax Act, 1948] - Commissioner, Trade Tax, U.P., Lucknow v. Alok Trading Co. (All.) 253 - Assessee-agency wanted to terminate agency and, hence, returned old goods to principal-medicine manufacturer - Manufacturer received old stock of medicines which might have expired by time of return - Whether return of old goods, unfit for sale, to principal by agent cannot be considered as sale and, hence, tax could not be levied on same - Held, yes [Section 2(h), read with section 3 of the U.P. Trade Tax Act, 1948] - G.D. Pharma v. Commissioner, Trade Tax, U.P. (All.) 255 GOODS & SERVICES TAX CASES ❑ JANUARY 20 - FEBRUARY 4, 2010 ◆ 7

vi Contents WORKS CONTRACT - TAXABILITY OF - Whether once a work is assigned by contractor to its sub-contractor, contractor ceases to execute work because property passes by accretion and there is no property in goods left with contractor which is capable of retransfer either as goods or in any other form - Held, yes - Whether, therefore, transfer of property is from sub-contractor to contracting party that is contractee, namely, recipient - Held, yes - Whether, in such a situation, payments made by contractor to sub-contractors cannot be brought within total turnover of contractor as such an interpretation would lead to double taxation - Held, yes [Section 4 of the Karnataka Value Added Tax Act, 2003] - Skyline Constructions & Housing (P.) Ltd. v. Authority for Clarification and Advance Rulings, Bangalore (Kar.) 173 - PAYMENT OF TAX AT COMPOUNDED RATES - Assessee-firm was awarded work for marking of National Highway with hot white and yellow thermoplastic road marking paint - Assessee claimed that work for paint marking constituted civil works within meaning of section 7(7) entitling it for payment of tax at compounded rate of 2 per cent - Whether since under section 7(7), payment of tax at compounded rate of 2 per cent is provided only if work awarded is a civil work, which includes construction also, and further since marking of road is not a part of construction of road and it is a post-construction work done for safe vehicular movement and purpose is to guide drivers and pedestrians using road, work for marking of roads with paint did not constitute civil work within meaning of section 7(7) - Held, yes - Whether, therefore, assessee was not entitled for payment of tax at compounded rate of 2 per cent - Held, yes [Section 7 of the Kerala General Sales Tax Act, 1963] - State of Kerala v. Thrimathy Contracting Co. (Ker.) 205 SECTION-WISE INDEX KARNATAKA VALUE ADDED TAX ACT, 2003 - Section 4 173, 210 KERALA GENERAL SALES TAX ACT, 1963 - Section 7 205 - Section 45A 247 KERALA VALUE ADDED TAX ACT, 2003 - Section 16 183 - Section 47(6) 243 - Section 67 217 MADHYA PRADESH VANIJYIK KAR ADHINIYAM, 1994 - Section 69 244 PUNJAB VALUE ADDED TAX ACT, 2005 - Section 51(7)(b) 227 - Section 68 222 TAMIL NADU GENERAL SALES-TAX ACT, 1959 - Section 31 235 GOODS & SERVICES TAX CASES ❑ JANUARY 20 - FEBRUARY 4, 2010 ◆ 8

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