TMI Blog2000 (3) TMI 949X X X X Extracts X X X X X X X X Extracts X X X X ..... n (Civil) No. 552 of 1999, C.W.P. No. 208 of 1994 - - - Dated:- 14-3-2000 - RAJENDRA BABU S. AND PHUKAN S.N. JJ. Senior Advocates: K. Parasaran, Gopal Subramaniam, Anil Divan and B. Dutta. for the parties. Other Advocates: P.H. Parekh, Sameer Parekh, M.M. Khanna, D.M. Popat, Ms. Indu Verma, Ranjit Sharma, Ms. Kiran Suri, R.P. Gupta, J.S. Attri, L.R. Rath, Bhavesh Panjuani, Lalit Chauhan, Kavin Gulati, B. Kanta 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... transfer of property in goods and not other payments. The High Court further noticed that the rule also does not enable any person to deduct any amount other than what is contemplated by the section and, therefore, it does not suffer from any invalidity. On that basis, the High Court dismissed the writ petitions. 2.. As was contended before the High Court, it is submitted on behalf of the appellant that provision 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (c) any authority or corporation established by or under a statute, or (d) any company incorporated under the Companies Act, 1956 (1 of 1956) including any State or Central Government undertaking, or (e) any co-operative society or any other association registered under the Societies Registration Act, 1860 (21 of 1860), shall, at the 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 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 contra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g out any works, shall at the time of- (i) payment thereof in cash or by issue of a cheque or bank draft or any other mode; or (ii) credit of such sum to the account of the works contractor; or (iii) discharging liability on account of the said valuable consideration to the works contractor; deduct an amount equal to two per cent of such sum towards the tax under section 12-A of the Act. (2) The deduction under sub-rule (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 o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t up to 4 per cent from the sum payable to the works contractor irrespective whether ultimately the transaction is liable for payment to any sales tax at all. In that view of the matter, we have no hesitation in rejecting the contention advanced on behalf of the State. 5.. The learned counsel drew our attention to the decision in a case arising under the Bihar Sales Tax Act and the earlier decision under the Orissa Sales Tax Act, 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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