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2013 (6) TMI 261 - HC - VAT and Sales TaxWork Contract Tax - whether petitioner derived double benefit in the form of the escalation of seigniorage fee and Work Contract Tax (WTC) and the amount paid in excess was directed to be recovered through memo, dated 28.03.2009? - Held that:- The agreement between the petitioner and the respondents provides for the revision of the bills or the amounts, in case there is revision of the tax regime. The petitioner made claims for enhancement of the bills on account of seigniorage fee and WCT. The scrutiny however has revealed that the benefit was availed at two stages; the first is in the form of cost of material and the second is under Clause 70.8. So was the case with the WCT. On coming to know that serious irregularities in this regard were taking place, the Government issued memo, dated 28.03.2009, directing that wherever the benefit of escalation of seigniorage fee or WCT was extended more than once, recoveries must be effected. It is in this context that the respondents withheld the amount. The petitioner does not dispute that the benefit of escalation in the seigniorage fee and WCT was extended to it in a different form and at the same time, the benefit was claimed under clause 70.8. In case, the petitioner disputes the correctness of the memo, dated 28.03.2009 or it is of the view that it did not avail the double benefit, it can certainly institute proceedings vis-a-vis the same. Withholding of the amount under that count by the respondents cannot be said to be without any basis. The petitioner, which is a Central Government agency, ought not to have driven the respondents to such a prolonged and unnecessary litigation. Therefore, the writ petition is dismissed, with costs of Rs.5,000/-.
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