TMI Blog2012 (3) TMI 423X X X X Extracts X X X X X X X X Extracts X X X X ..... ale tax law, deduction of tax at source is permissible with reference to prima facie taxable value of the transaction and deduction of tax at source cannot be de hors the tax liability of a dealer. State legislature cannot allow deduction from bills de hors the same - there was no proposal to make deduction of tax at source from the entire transaction value but only from such value as is found to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d Transfer (BOOT) basis in five years to provide data connectivity, voice and video services to various offices and other locations by using technology. The petitioner submitted bills for rendering the services as per the agreement and also applied for issuance of certificates of non-liability to pay tax under the Meghalaya Value Added Tax Act, 2003 (the VAT Act), but the said prayer was rejected ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ore, respondent No.2 is bound to issue 'no tax liability' certificate as sought by the petitioner. Reliance has been placed on the judgment of the Hon'ble Supreme Court in BSNL vs. Union of India, [(2006) 145 STC 91 (SC] to submit that service tax and value added tax are mutually exclusive and are not applicable to the same value. Opposing the above submissions, learned Additional A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n and deduction of tax at source cannot be de hors the tax liability of a dealer. State legislature cannot allow deduction from bills de hors the same. Reference may be made to law laid down in Steel Authority of India vs. State of Orissa, AIR 2000 SC 946 and Rapti Commission Agency vs. State of U.P., (2006)6 SCC 522. In view of this legal position, learned Additional Advocate General has stated t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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