Composition tax and reduced TDS relief are mutually exclusive under the Assam VAT scheme for contractors and dealers.

A dealer or contractor who voluntarily opts for composition of tax under section 20 of the Assam Value Added Tax Act, 2003 cannot also seek reduced or nil tax deduction at source under section 47(1)(b)(i). The statutory scheme treats the composition regime and the deduction-certificate mechanism as distinct and mutually exclusive, so permitting both would defeat the composition provision. The prescribed authority is the delegated authority competent to consider section 47 applications, but once composition permission has been granted, the applicant is estopped from pursuing the separate deduction benefit. The earlier direction to consider the section 47 application was therefore liable to be recalled.

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Issues: Whether a dealer or contractor who has opted for composition of tax under section 20 of the Assam Value Added Tax Act, 2003 can still seek a certificate under section 47(1)(b)(i) of the Act for reduced or nil deduction of tax at source, and whether the respondent-IOC could entertain such an application as the prescribed authority.

Analysis: The statutory scheme of the Act was read to show that the "prescribed authority" is a person appointed to assist the Commissioner and vested with delegated powers under section 3(9), and that such authority is the competent forum for a section 47(1)(b)(i) application. The composition scheme under section 20 permits a dealer to pay tax by a prescribed lump sum in lieu of the normal liability, while section 47 provides a separate mechanism for lesser or no deduction at source on a contractor's application. The Court held that these two provisions operate in distinct fields and are mutually exclusive. Once a dealer has voluntarily elected composition and obtained permission under that scheme, he is estopped from invoking section 47(1)(b)(i), because permitting both routes would render section 20 otiose. On the facts, the composition permission showed that the petitioner had opted for the composition regime and therefore could not maintain a further request under section 47(1)(b)(i).

Conclusion: The application under section 47(1)(b)(i) was not maintainable after election of the composition scheme, and the earlier direction requiring consideration of that application was liable to be recalled.

Ratio Decidendi: A dealer or contractor who voluntarily opts for composition of tax under section 20 of the Assam Value Added Tax Act, 2003 cannot simultaneously claim the benefit of section 47(1)(b)(i) for reduced or nil deduction of tax at source, as the two statutory remedies are mutually exclusive.

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