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2002 (5) TMI 841 - HC - VAT and Sales Tax
Issues:
Validity of deduction of sales tax at source under section 27 of the Assam General Sales Tax Act, 1993. Analysis: The petitioners challenged the deduction of sales tax at source under section 27 of the Assam General Sales Tax Act, 1993. The petitioner contended that the Commissioner of Taxes, Assam, failed to clarify the correct legal position regarding tax deduction at source. The court examined a previous judgment in Arunodoi Construction Co. (P.) Ltd. v. State of Assam and upheld the provision of section 27 by interpreting it to cover goods in works contracts liable to tax. The court also highlighted the applicability of deductions and exemptions provided under the Act in the context of tax deduction at source. The court clarified that contractors executing works contracts are eligible to use declaration in form A for tax exemption. The judgment emphasized that the provisions of section 27 and related rules are not ultra vires or confiscatory. The court acknowledged the need for consistency in judicial decisions and cited the principle of affording similar relief to parties in similar situations. Following this principle and the law of the land under article 14 of the Constitution, the court restrained the respondents from making deductions of tax at source from the entire bill amount of the petitioners. However, the respondents were permitted to deduct tax at source after excluding specific components from the bill amount as per the provisions of the Act and related rules. In conclusion, the court disposed of the writ petition, providing relief to the petitioners by restraining the respondents from deducting tax at source from the entire bill amount. The judgment emphasized the importance of consistency in judicial decisions and the principle of providing similar relief to parties in similar circumstances.
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