Skip to content


Stanes Motors (South India) Ltd., Coimbatore Vs. State of Kerala - Court Judgment

LegalCrystal Citation
SubjectSales Tax
CourtKerala High Court
Decided On
Case NumberTax Revn. Case No. 5 of 1965
Judge
Reported in[1967]19STC209(Ker)
ActsTravancore-Cochin General Sales Tax Act, 1125 - Sections 3(1)
AppellantStanes Motors (South India) Ltd., Coimbatore
RespondentState of Kerala
Appellant Advocate V. Desikan,; K.A. Nayar and; K. Sukumaran, Advs.
Respondent AdvocateAdv. General
DispositionRevision allowed
Cases Referred and C. Rajagopalachari v. Corporation of Madras
Excerpt:
- .....of madras, air 1964 sc 1172 it has to be held, that the only rate at which tax can be levied on works contract, if at all, is at 3 pies in the rupee as provided in section 3 (1) (b) of the travancore-cochin general sales tax act, 1126. in this case, the levy is at a higher rate, viz., 2 np. in the rupee. there is also a surcharge under the kerala surcharge on taxes act, 1967 'which is not attempted to be supported in respect of works contract by the department. 2. in these circumstances, we think that the proper course will be to quash the assessment and leave the department to make a fresh assessment, if possible, in accordance with law in the view we have taken, the other contentions of counsel for the petitioner do not arise for consideration and are not considered in this.....
Judgment:

Velu Pillai, J.

1. In the light of the decisions of the Supreme Court in Town Municipal Committee, Amraoti Taluq v. Ramchandra Vasudeo Chimote, AIR 1964 SC 1166 and C. Rajagopalachari v. Corporation of Madras, AIR 1964 SC 1172 it has to be held, that the only rate at which tax can be levied on works contract, if at all, is at 3 pies in the rupee as provided in Section 3 (1) (b) of the Travancore-Cochin General Sales Tax Act, 1126. In this case, the levy is at a higher rate, viz., 2 nP. in the rupee. There is also a surcharge under the Kerala Surcharge on Taxes Act, 1967 'which is not attempted to be supported in respect of works contract by the department.

2. In these circumstances, we think that the proper course will be to quash the assessment and leave the department to make a fresh assessment, if possible, in accordance with law In the view we have taken, the other contentions of counsel for the petitioner do not arise for consideration and are not considered in this judgment. This Tax Revision Case is allowed as above. No costs


Save Judgments// Add Notes // Store Search Result sets // Organizer Client Files //