9911796707
TMI Blog2012 (3) TMI 383X X X X Extracts X X X X X X X X Extracts X X X X ..... ssary that time gap between the final assessment and tentative assessment is minimum, so that in case where huge amount is deducted, which may not be found due, the assessee does not suffer unnecessary loss. Some difference in the perception of the authority deducting the tax and that of the assessing authority under the Act is not ruled out but the grievance in this regard can be redressed to a great extent if the time taken by the assessing authority is not unreasonable long. Since the statutory provision, as read down, does not by itself provide for deduction of more amount than the tax liability, we have directed expeditious assessments where there is dispute of liability, there is no ground to interfere at this stage. Issuing lower ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ner, supplying, fabricating and providing high tensile steel strands, construction of RCC cast in situ bored vertical piles, supply of TMT reinforcement bars, supply of cement of 43/53 grade and other ancillary works, etc. According to the petitioner, the said work involves mostly labour component and use of construction material on which VAT has already been paid. However, respondent Nos. 7 to 10 started making deduction at source on the gross value bill of the petitioner at the rate of 12.5 per cent under section 47 of the Act which provides for deduction of tax at prescribed percentage of taxable turnover . The taxable turnover under section 11 of the Act was very wide so as to include charges towards labour, services and other charge ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... December 10, 2008 was cancelled. According to the petitioner, rule 28, as amended on February 22, 2010, modifies the existing provision to seek certificate of deduction of tax at lower amount or no deduction of tax only when a running bill for a completed portion of the work becomes due for payment. According to the petitioner, such a limitation was not valid and such certificate should be available even before the running bill becomes due. In absence thereof, a dealer may be liable to deduction of tax to much higher extent than its liability, which was not permissible. Mere fact that refund could be subsequently claimed was no justification for excess recover, as held in Bhawani Cotton Mills Ltd. v. State of Punjab [1967] 20 STC 290 (SC) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 000] 118 STC 297 (SC) and Rapti Commission Agency v. State of U.P. [2006] 147 STC 566 (SC); [2006] 7 RC 360; [2006] 6 SCC 522. The issue was also dealt with in a judgment of the Punjab and Haryana High Court in Larsen and Toubro Limited v. State of Haryana in CWP No. 14797 of 2010 decided on October 26, 2010 [2011] 37 VST 428 (P H), to which one of us (the Chief Justice) was a party. The learned counsel for the State has drawn our attention to the judgments of this court in Allied Traders v. State of Assam [2002] 1 GLT 482 and MES Builders Association of India v. Union of India [2009] 26 VST 140 (Gauhati); [2010] 2 GLR 576 wherein similar view was taken by reading down the provision in question so as to allow deduction equal to probable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sed to a great extent if the time taken by the assessing authority is not unreasonable long. Since the statutory provision, as read down, does not by itself provide for deduction of more amount than the tax liability, as earlier held in the two judgments of this court, referred to above and we have directed expeditious assessments where there is dispute of liability, there is no ground to interfere at this stage. While the Rules have to be read consistent with the statutory mandate, we do not find the Rules to be irreconcilable with the statute. Issuing lower liability or no liability certificate with reference to running bills is not shown to be against the Act. In view of above, the writ petitions can be disposed of with a direction ..... X X X X Extracts X X X X X X X X Extracts X X X X
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