9911796707
TMI Blog2001 (2) TMI 998X X X X Extracts X X X X X X X X Extracts X X X X ..... 1) of section 13AA of the Orissa Sales Tax Act, 1947 (hereinafter referred to as "the Act") requires that any person responsible for paying any sum to any contractor for carrying out any works contract which involves transfer of property in goods shall at any time of credit of such sum to the account of the contractor or at the time of payment thereof in cash or by issue of a cheque or any other mode deduct an amount towards sales tax equal to four per cent of such sum of works contract if its value exceeds rupees one lakh. Under sub-section (3) thereof, the amount deducted from the bills or invoice is required to be deposited into a Government treasury within one week from the date of deduction in such form or challan as may be prescribed. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion 13AA(3) of the Orissa Sales Tax Act, 1947 for such wilful withholding of deposit of T.D.S. amount. Though the said letter was served on you on dated April 16, 1999 as per A.D. kept in the file neither you appeared nor effected appearance through any authorised person to state the reasons of such wilful withholding of Government revenue in breach of the provision of the Orissa Sales Tax Act, 1947. Hence it is ascertained that you have no reason to state in regards to contravening the provision of section 13AA(3) of the Orissa Sales Tax Act, 1947, compelling me to impose penalty which is to be recovered from you as your personal liability." Against the said imposition of penalty, the petitioner preferred revision before the Commissi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was bound to make deduction towards sales tax from the bills of the contractors and deposit the same into the Government treasury within one week from the date of such deduction. Although he made payment to the contractors as indicated above, he did not deduct the sales tax from their payments at the source. There is therefore no doubt that he contravened sub-section (1) and sub-section (3) of section 13AA of the Act and incurred the liability of payment of penalty. 5.. Learned counsel contended that under sub-section (6) of section 13AA although the outerlimit of penalty is prescribed, in a given circumstance the Sales Tax Officer has the discretion to modulate the imposition of penalty. On due consideration, we find substance in this su ..... X X X X Extracts X X X X X X X X Extracts X X X X
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