Statutory precondition for tax deduction at source not met, so deduction from the supplier was impermissible.

Deduction of tax at source under section 27(1)(a) of the Assam General Sales Tax Act, 1993 depended on the deducting entity satisfying the statutory description of a company under Government control. The petitioner's objection that this precondition was not met remained uncontroverted by affidavit, and the supply and billing relationship relied on by the State did not justify the deduction in the manner attempted. On that basis, respondent no. 3 was not entitled to deduct tax at source from the petitioner.

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Issues: Whether respondent no. 3 was entitled to deduct tax at source from the petitioner under section 27(1)(a) of the Assam General Sales Tax Act, 1993.

Analysis: The entitlement to deduct tax at source depended on whether the deducting entity answered the statutory description of a company under the control of the Government. The objection raised on behalf of the petitioner was not controverted by any affidavit in opposition. The judgment also noted that the supplies and billing relationship relied upon by the State did not justify the deduction from the petitioner in the manner attempted.

Conclusion: Respondent no. 3 was not entitled to deduct tax at source from the petitioner.

Ratio Decidendi: Deduction of tax at source can be made only by a person or entity that satisfies the statutory precondition for such deduction under the governing sales tax provision.

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