Deduction at source requires prescribed procedure; without it, sales tax withholding from contractors' bills is invalid.

Sales tax could not be deducted at source from contractors' bills where the governing law had not prescribed the manner of deduction. The court applied the principle that a statutory power requiring exercise in a particular way must be exercised only in that way or not at all, and held that the authority lacked jurisdiction to make the deduction without prescribed procedure. The deduction at source was quashed, and the respondents could resume such deduction only after the manner of deduction was properly prescribed.

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Issues: Whether sales tax could be deducted at source from the contractors' bills without the manner of deduction being prescribed under the governing sales tax law.

Analysis: The provision empowering deduction at source contemplated deduction not only at a prescribed rate but also in the prescribed manner. A statutory power that is required to be exercised in a particular way must be carried out in that way or not at all. Since the manner of deduction had not been prescribed, the authority lacked jurisdiction to deduct sales tax at source from the bills payable to the contractors.

Conclusion: The deduction of sales tax at source was quashed. The respondents were permitted to resume such deduction only after the manner was prescribed.

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