The division bench of Karnataka High Court has confirmed 4 percent Value Added Tax (VAT) on Iron and Steel used in Casting, Beams, Pillars and Roofs.
The Court was hearing a revision petition filed by the revenue under section 65 of the Karnataka Value Added Tax Act, 2003.
The division bench comprising of Justice Vineet Kothari and Justice H.B Prabhakara Sastry relied Supreme Court decision in B.Narasamma vs The Deputy Commisioner, Commericial Taxes, Karnataka and Another and observed that, to the effect that the “Iron and Steel” purchased by the respondent used in the execution of the Civil works contracts of the Construction of the buildings, remains “Iron and Steel” as declared goods under the provisions of Section 14 of the Central Sales Tax Act, 1956 and therefore taxable only at the concessional rate of 4 percent and not at 13 percent rate of tax.
While dismissing the revision petition, the Court also observed that, “Since the controversy now stands covered by the decisions of Supreme Court and is no longer res integra, we are satisfied that no question of law arises in the present revision petition filed by the Revenue”.
Read the full text of the Order below.
