2002 (5) TMI 823

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....titioners in these cases are contractors. They complain that the respondents have illegally deducted sales tax at the rate of 2 per cent from the payments made to them. According to the petitioners, the deductions from payments for supply of labour could not have been made. 2.. In the reply filed on behalf of the respondents, it has been, inter alia, averred that contracts for laying of undergr....

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....bour, as also some material like bricks, sand, etc. What was the cost of bricks, etc.? Was any tax leviable thereon? Had the petitioners paid it? These were questions of fact which had to be determined by the authority. Without doing anything, a blanket deduction at 2 per cent from the bills submitted by the contractors cannot be sustained.   5. Mr. Salil Sagar contends that the petitioner....

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....hen the deductions could have been made. Since nobody has gone into the matter, the deductions already made cannot be sustained. 8.. In view of the above, the writ petitions are disposed of with the direction that the respondent-authorities shall refund the amount deducted from the petitioners' bills and deposited with the respondent-State. The needful shall be done within one month from today.....