2002 (5) TMI 823 - HC - VAT and Sales Tax

Summary

The petitioners, contractors, challenged the illegal deduction of 2% sales tax by the respondents. The High Court ruled in favor of the petitioners, directing the authorities to refund the deducted amount with 9% interest if not done within one month. The court emphasized that sales tax deductions should be based on a proper examination of facts and that no tax is leviable on the supply of labor.