Tender terms and tax-inclusive pricing justified purchase tax deduction from bills; statutory deduction at source did not apply.

Tender pricing that expressly included purchase tax justified deduction from the contractor's bills where the supply orders and agreement contemplated tax-inclusive rates. The Court treated the adjustment as contractual, not a statutory deduction at source, because the deducted amount was deposited in the Government Treasury in the respondent's own name and reflected in its tax returns. Section 27 of the Assam General Sales Tax Act, 1993 was held inapplicable on these facts, while section 8(1)(d), Schedule V, and the definition of sale price supported the respondent's position. The deduction was therefore upheld and the challenge failed.

---

---

Issues: Whether the respondent-Corporation was entitled to deduct purchase tax from the petitioner's bills under the tender terms and contract, or whether such deduction was impermissible and the tax liability lay only on the respondent as the last purchaser under the Assam General Sales Tax Act, 1993.

Analysis: The supply orders and contract agreement showed that the petitioner had quoted rates inclusive of all taxes, including purchase tax or sales tax. The contract specifically contemplated such inclusion, and the rate break-up reflected the AGST component. The Court also noted that the amount deducted by the respondent was deposited in the Government Treasury in its own name and reflected in its tax returns. On that basis, the deduction was held not to be a statutory deduction at source under section 27 of the Act, but a contractual adjustment arising from the tender process and agreed pricing. Section 8(1)(d) read with Schedule V and the definition of sale price were considered to support the respondent's position, while section 27 was found inapplicable on the facts.

Conclusion: The deduction of purchase tax from the petitioner's bills was upheld, and the petitioner's challenge failed.

---