TMI Blog2006 (8) TMI 545X X X X Extracts X X X X X X X X Extracts X X X X ..... ty, the Act ) and is liable to pay tax under the Act, by virtue of section 5F of the Act, insofar as the value of goods utilised in the execution of the said works contract. Under section 5-H(1) of the Act, the bodies enumerated therein, the Central Government or the State Government, etc., are obligated to deduct from out of the amount payable by such bodies to a dealer, in respect of the works contract executed for such bodies, such amount, as may be prescribed. Under subsection (2), the tax amount so deducted, is required to be remitted to the State Government. Under sub-section (3), the authority making deductions pursuant to the obligation under sub-section (1) (for the purpose of convenience referred to as contractee ), is required ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er cent of the total turnover; (2). The tax deducted under sub-section (1) shall be remitted to Government in such manner and within such time, as may be prescribed. (3). The authority making deduction under sub-section (1) shall furnish to the dealer from whom such deduction is made, a certificate, containing such particulars as may beprescribed. (4) to (5) . . . (6). Where, tax in respect of works contract is remitted under sub-section (2), the tax payable by the dealer in respect of such works contract shall be reduced by the amount of tax already remitted under the said sub-section: Provided that the burden of providing that the tax on such works contract has already been remitted and of establishing the exact quantum of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nment or State Government or an Industrial, Commercial or trading undertaking of the Central Government or of the State or a Local Authority or a Statutory Body, or a company registered under Companies Act, 1956 shall deduct from out of the amounts payable by them to a dealer in respect of works contract executed for them an amount calculated at such rate as may be prescribed, but not exceeding three per cent of the total turnover and shall be remitted to Government. Further, it is clarified that tax deduction at source shall be made out of the payments made by a contractee to a contractor or subcontractor if the payment is made by the contractee directly to the contractor or sub-contractor. If the payment is made to the contractor an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of the contractee to issue such certificate, directly in favour of the sub-contractor, the sub-contractor is once again made to pay tax without any authority of law, in substance, resulting in payment twice over on the same taxable event. For the assessment year 2002-03, the tax liability of the petitioner was assessed by the first respondent by his order dated August 18, 2004. Aggrieved by the same, the petitioner carried the matter in appeal before the second respondent, who in turn, set aside the assessment order for the reasons recorded by him and remanded the matter to the assessing authority for fresh assessment in terms of the order of remand. The assessing authority, once again, passed an order dated May 22, 2006. One of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... risdiction as being diametrically opposed to the clear and categorical directions contained in the appeal proceedings and also in contravention of the judgment of the honourable Supreme Court in AIR 1962 SC 182 (sic) and consequently, directing the assessing authority namely, the first respondent herein, to consider and credit the abovementioned amounts for the purpose of computation and determination of the petitioner's liability to tax under the Andhra Pradesh General Sales Tax Act, 1957 for the assessment year 2002-03 and pending finalisation of the correct liability to tax, the first respondent may pleased be restrained from enforcing the assessment proceedings dated May 22, 2006 in Ref. No. PJT/13/2/2954/2002-03/APGST . . Hear ..... X X X X Extracts X X X X X X X X Extracts X X X X
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