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TMI Blog2000 (3) TMI 949X X X X Extracts X X X X X X X X Extracts X X X X ..... nta Rao, Dr M.V.K. Moorthy, Ms. Sudha Gupta, Naresh K. Sharma, K. Ram Kumar, B. Sridhar, Ms. Rachana Joshi Issar, J.C. Seth, Badri Prasad Singh and Ajit Pudussery, for the parties. -------------------------------------------------- The judgment of the Court was delivered by S. RAJENDRA BABU, J.-Civil Appeal No. 8468 of 1997: The appellant before us called in question the validity of section 12-A of the Himachal Pradesh General Sales Tax Act, 1968 (hereinafter referred as "the Act") and rule 31-A of the Himachal Pradesh General Sales Tax Rules (for short, "the Rules") before the High Court of Himachal Pradesh. The said provisions provided for deduction of an amount from the bills or invoices of the works contractors ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for compulsory deduction from payment to works contractor does not provide for exclusion of cases where the transaction may not amount to a sale at all and there is no mechanism by which the contractor can claim that a transaction does not amount to sale so that no deductions may be made under the aforesaid provision. It is also submitted that the recovery is on events which do not attract tax at all, for example, section 6 of the Act, which is the charging section, excludes from taxable turnover, the turnover of a dealer on sales to any undertaking supplying electrical energy to the public under a licence or sanction granted under the relevant law of goods for use by it in the generation or distribution of such energy subject to production ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of payment thereof in cash or by issue of a cheque or draft or any other mode, whichever is earlier, deduct an amount towards sales tax equal to four per centum of such sum in respect of the works contract, if the value of the works contract exceeds rupees one lakh. 12-A. Tax deduction from the bills/invoices of the works contractors.- (1) Notwithstanding anything to the contrary contained in section 13, every per- son making any payment or discharge of any liability on account of valuable consideration payable for the transfer of property in goods, whether as goods or in some other form, involved in the execution of works contract shall deduct an amount not exceeding four percentum, as may be prescribed, purporting to be a part or full of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (1) shall be made from all payments being made in respect of all works contracts executed, whether in part or in full." 3.. However, Shri B. Dutta, the learned Senior Advocate appearing for the State, very valiantly emboldened himself to submit that he can distinguish the decision of this Court in Steel Authority of India case [2000] 118 STC 297; (2000) 2 SCALE 98 and stated that the provisions of section 13-AA and section 12-A are not in pari materia. 4.. A bare perusal of the two provisions will make it clear that in either provision there is an obligation to deduct from transactions relating to works contract on bills or invoices raised by the works contractor an amount not exceeding 4 per cent or 2 per cent, as the case may be. Thoug ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... but in view of the decision of this Court in Steel Authority of India [2000] 118 STC 297; (2000) 2 SCALE 98, it is wholly unnecessary to refer to the same. Following the decision in Steel Authority of India case [2000] 118 STC 297 (SC); (2000) 2 SCALE 98 (SC), we allow this appeal and set aside the order made by the High Court by allowing the writ petition and quashing the aforesaid provisions as being beyond the purview of the Himachal Pradesh State Legislature. Such amount as has been collected from the appellant under the provisions of section 12-A read with rule 31-A shall forthwith be refunded by the State. If any amount has been deposited in any bank pursuant to orders passed by this Court or the High Court, it shall be refunded to t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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