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2012 (3) TMI 378 - HC - VAT and Sales TaxDeduction of value added tax at four per cent from the due payment of the petitioner - provisions contained in the Tripura Value Added Tax Act, 2004 and the Rules framed thereunder challenged to be unconstitutional to the extent of requiring flat rate deductions without reference of tax liability - deduction of tax from the bills of the petitioner for the transportation work undertaken by it questioned Held that:- Deduction of four per cent from the bills is referable to tax liability and not de hors thereof. Thus, deduction of four per cent from the bills of the petitioner cannot be without considering its tax liability. This being the settled legal position, the petitioner may give a declaration as to its taxable turnover out of the payment of the bill with a copy to the assessing authority and the respondents will make deduction of such tax as is considered to be referable to tax liability of the petitioner and pay the said amount to the credit of the Sales Tax Department. This will be without prejudice to the provisions of assessment, levy of interest, penalty, recovery or any other statutory provisions and will not in any manner affect the statutory rights for levy and collection of taxes. Thus do not consider necessary to deal with any other questions raised in the writ petition as the said questions can be adjudicated by the statutory authorities in accordance with law. The tax already deducted will be liable to be adjusted in the order of final assessment.
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